Failed to activate X window after last update on edgy

After activation of latest update by Package Manager the X window failed to initiate sending me to check the log file.
Comparing the failed log with the previous I found that With New Kernel(l2.6.17-12):could not load the NVIDIA kernel module.

With previous one: (12.6.17-11) works OK although not smooth (see below)

.
.
The failed log:
.
.

(II) Setting vga for screen 0.
(**) NVIDIA(0): Depth 24, (--) framebuffer bpp 32
(==) NVIDIA(0): RGB weight 888
(==) NVIDIA(0): Default visual is TrueColor
(==) NVIDIA(0): Using gamma correction (1.0, 1.0, 1.0)
(**) NVIDIA(0): Option "UseEdidFreqs" "false"
(**) NVIDIA(0): Enabling RENDER acceleration
(**) NVIDIA(0): Using HorizSync/VertRefresh ranges from the EDID has been
(**) NVIDIA(0): disabled on all display devices.
(II) NVIDIA(0): Support for GLX with the Damage and Composite X extensions is
(II) NVIDIA(0): enabled.
(EE) NVIDIA(0): Failed to load the NVIDIA kernel module!
(EE) NVIDIA(0): *** Aborting ***
(II) UnloadModule: "nvidia"
(II) UnloadModule: "ramdac"
(II) UnloadModule: "fb"
(EE) Screen(s) found, but none have a usable configuration.

Fatal server error:
no screens found

the previous succsseful log:
.
.
.
(II) Setting vga for screen 0.
(**) NVIDIA(0): Depth 24, (--) framebuffer bpp 32
(==) NVIDIA(0): RGB weight 888
(==) NVIDIA(0): Default visual is TrueColor
(==) NVIDIA(0): Using gamma correction (1.0, 1.0, 1.0)
(**) NVIDIA(0): Option "UseEdidFreqs" "false"
(**) NVIDIA(0): Enabling RENDER acceleration
(**) NVIDIA(0): Using HorizSync/VertRefresh ranges from the EDID has been
(**) NVIDIA(0): disabled on all display devices.
(II) NVIDIA(0): Support for GLX with the Damage and Composite X extensions is
(II) NVIDIA(0): enabled.
(WW) NVIDIA(0): Unable to read EDID for display device CRT-0
(II) NVIDIA(0): NVIDIA GPU GeForce FX 5200 at PCI:1:0:0
(--) NVIDIA(0): VideoRAM: 131072 kBytes
(--) NVIDIA(0): VideoBIOS: 04.34.20.22.00
(II) NVIDIA(0): Detected AGP rate: 8X
(--) NVIDIA(0): Interlaced video modes are supported on this GPU
(--) NVIDIA(0): Connected display device(s) on GeForce FX 5200 at PCI:1:0:0:
(--) NVIDIA(0): CRT-0
(--) NVIDIA(0): CRT-0: 350.0 MHz maximum pixel clock
(II) NVIDIA(0): Assigned Display Device: CRT-0
(II) NVIDIA(0): Validated modes:
(II) NVIDIA(0): "1280x1024"
(II) NVIDIA(0): "1024x768"
(II) NVIDIA(0): "800x600"
(II) NVIDIA(0): "640x480"
(II) NVIDIA(0): Virtual screen size determined to be 1280 x 1024
(WW) NVIDIA(0): Unable to get display device CRT-0's EDID; cannot compute DPI
(WW) NVIDIA(0): from EDID.
(==) NVIDIA(0): DPI set to (75, 75); computed from built-in default
(--) Depth 24 pixmap format is 32 bpp
(II) do I need RAC? No, I don't.
(II) resource ranges after preInit:
 [0] 0 0 0xc0000000 - 0xc7ffffff (0x8000000)
.
.
.
.
.