If you were using the NVIDIA binary driver the initial problem (xorg didn't
start after updates) is _probably_ different to what you are seeing now you are
trying to use vesa. In an attempt to solve the second problem can you do the
following:
mv /etc/X11/xorg.conf /etc/X11/xorg.conf.old
and then restart gdm or reboot and report what happens?
** Changed in: xorg (Ubuntu)
Status: New => Incomplete
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[gutsy] xserver-xorg now fails to start
https://bugs.launchpad.net/bugs/137652
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