I can confirm this with the legacy 96 drivers (MX400 hardware) on 10.04,
none of the above makes TTYs useable, note I also have no
Plymouth/splash during boot or shutdown. With nv everything works as it
should.

** Also affects: nvidia-drivers-ubuntu
   Importance: Undecided
       Status: New

** Changed in: linux-restricted-modules-2.6.24 (Ubuntu)
       Status: New => Confirmed

** Changed in: nvidia-drivers-ubuntu
       Status: New => Confirmed

-- 
nvidia-glx-new causes unusable tty's
https://bugs.launchpad.net/bugs/220951
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