Before it worked I tried a lot of different approach. Manually disabling
nouveau before installing the driver, etc.

Here are some steps I did: 
(I cant remember the specific order and don't know which had played a decisive 
role. Maybe I had a different problem)

- installing the chip set driver (amd64-microcode)
- sudo apt-get remove --purge nvidia-*
- compiled and tested nvidia driver installer by myself (failed to install)
- added following to /etc/modprobe.d/blacklist-nouveau.conf
blacklist nouveau
blacklist lbm-nouveau
options nouveau modeset=0
alias nouveau off
alias lbm-nouveau off
- echo options nouveau modeset=0 | sudo tee -a /etc/modprobe.d/nouveau-kms.conf
- sudo update-initramfs -u
- sudo rm /etc/X11/xorg.conf
- echo 'nouveau' | sudo tee -a /etc/modules

Hope it helps someone.
Let me know if you need anything like versions, logs, etc.

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to nvidia-graphics-drivers-304-updates in Ubuntu.
https://bugs.launchpad.net/bugs/1579501

Title:
  graphics distorted, lightdm restarting

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/nvidia-graphics-drivers-304-updates/+bug/1579501/+subscriptions

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