Experiencing the same problem after upgrading from Gutsy to Hardy. The updater 
completed the installation of new packages and went into the cleanup stage, and 
asked me to decide whether to remove obsolete packages. I clicked on the 
"review" button, and my X session immediately restarted--saw the NVidia splash 
screen and then the KDM login screen. Updater did not reappear. I restarted and 
the system booted normally, but X failed to start. Attempting a manual "startx" 
produced the same "API mismatch" error as Solo0815. However, after some 
investigation, I found that there were multiple NVidia kernel modules 
available, and that executing "modprobe nvidia_new" allowed X to start 
normally. Changing the line
DISABLED_MODULES=""
in /etc/default/linux-restricted-modules-common to
DISABLED_MODULES="nvidia nvidia_legacy"
allowed normal boot.

-- 
Regression: nvidia-glx-new incompatible with Linux 2.6.24-16 (works with -15)
https://bugs.launchpad.net/bugs/221239
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