Updating the modules did solve the booting problem
but I was left with an unusable nVidia card.

Solved this by installing the nVidia drivers from their website.

Also noticed that when in Synaptic to update the kernel modules
there were about 14 other programs availabe to update in
the Installed (upgradable) status field. (a lot of them involving compiz)
I've installed all those as well.

System seems ok now.

Herbert

-- 
system won't boot after kernel 2.6.24-16-generic update
https://bugs.launchpad.net/bugs/215833
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