Remove the ServerLayout section and the modules section so that it looks
like the following:

Section "Device"
    Identifier "Configured Video Device"
    Driver "nvidia"
    Option "NoLogo" "True"
EndSection

Section "Monitor"
    Identifier "Configured Monitor"
EndSection

Section "Screen"
   Identifier "Default Screen"
   Monitor "Configured Monitor"
   Device "Configured Video Device"
   Defaultdepth 24
EndSection


Then restart the xserver and let me know how it goes

-- 
Intrepid: Latest update destroys X server configuration on MacBook Pro (Nvidia 
GeForce 8600M GT, nvidia-glx-177)
https://bugs.launchpad.net/bugs/263528
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