This bug was fixed in the package nvidia-graphics-drivers -
195.36.15-0ubuntu2
---------------
nvidia-graphics-drivers (195.36.15-0ubuntu2) lucid; urgency=low
* debian/nvidia-$flavour.{dirs|postinst}.in, rules:
- Install the blacklist file in /lib/nvidia-$flavour instead
of /usr/lib/nvidia-$flavour so that the file is available
early in the boot process when /usr is on a different
partition (LP: #538071).
- Ignore errors when trying to update the initramfs
with -k $CURRENT_KERNEL which is known to fail when
using chroots (LP: #556653).
-- Alberto Milone <alberto.mil...@canonical.com> Fri, 09 Apr 2010 13:18:57
+0200
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KMS driver blacklisting with /usr on separate partition fails (Lucid)
https://bugs.launchpad.net/bugs/538071
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