Using envyng to install the drivers worked for me. I did the following:

sudo apt-get install envyng-core
Ctrl-Alt-F1
sudo /etc/init.d/gdm stop
envyng -t
Took option 1 - Install the NVIDIA driver
Wait for completion and took the reboot option

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Nvidia fail with DKMS on linux-generic-pae 
https://bugs.launchpad.net/bugs/454220
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