I'm using ubuntu 8.04 and I have the same issue.
I then stopped the gdm from the console and tried to manually start the server 
with startx and there was a error message that said that there was a api 
mismatch between the driver and the module. 
It wasn't in the log file so I had to pipe it in another file.
I have a GeForce Go 7300 card.


** Attachment added: "log"
   http://launchpadlibrarian.net/15514828/log

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restricted nvidia driver fails after upgrade to kubuntu 8.04
https://bugs.launchpad.net/bugs/232012
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