I can confirm I have the exact same bug (same steps to reproduce and
workaroud).

My configuration is the following :
- Karmic Alpha 4 with all available updated packages installed
- on Fujitsu Siemens Esprimo Mobile X9525 notebook, with nvidia graphics card
- installed restricted driver (v185)

-- 
X doesn't start automatically any more after installing restricted nvidia 
drivers
https://bugs.launchpad.net/bugs/436578
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