I solved my problem with (...Installing latest beta drivers (173.08) and
setting DISABLED_MODULES="nv" in /etc/default/linux-restricted-modules-
common) (thanks bugmenot) but installed the latest NVIDIA driver
instead, not the beta. However, it really needs to be fixed since its
going to create mayor problems to newbies like myself.

Current driver: NVIDIA-Linux-x86-173.14.09.pkg1.run

Current state:
1. The driver needs to be re-installed/or reloaded every time you upgrade to a 
newer kernel (currently on kernel 2.6.24-19-generic)

2. It seems to be presenting the NVIDIA logo every time Ubuntu loads.
"it only showed it once on 7.10, when you enabled it"

Thanks...

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