I had this same problem, but I fixed it installing the nvidia package version 
169.12.
It does not work after installing the drivers, so, i looked at this post 
http://www.nvnews.net/vbulletin/showthread.php?t=72490
and disabled the nv and nvidia_new modules in the 
/etc/default/linux-restricted-modules-common file (that is, 
DISABLED_MODULES="nv nvidia_new").
Then, i ran the nvidia-xconfig and rebooted... finally it displayed nice 
graphics and I even could enable the desktop effects, I saw that the 
nvidia-settings utility even recognized correctly my monitor.

I hope this helps.

-- 
Nvidia driver does not work properly in hardy
https://bugs.launchpad.net/bugs/222407
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