How are you setting up two monitors in edgy?  
I don't think we "supported" dual monitor set-ups until gutsy. 
What blacklist are you talking about?  The only one I know of is for compiz

I don't think nouveau will be "optional"  I think it will eventually be the 
default.   The Ubuntu packages were just updated, a guide to installing them is 
here: http://nouveau.freedesktop.org/wiki/UbuntuPackages
You could give them a try but I am unsure of how well dual monitors would work 
(if at all).  
Also, if nothing else, please check your card and submit a dump on this 
list:http://people.freedesktop.org/~jpakkane/ren/

I'm somewhat sure that your series of card could (and should) use the
nvidia-glx-new driver which might be the reason for the failure (it
wasn't available for edgy).

-- 
[gutsy] nvidia driver not loaded by default after upgrade
https://bugs.launchpad.net/bugs/144699
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