System won't boot with nvidia driver enabled

I just tried to upgrade Ubuntu 11.04 to 11.10, but without success.

I took a picture of what the screen are showing when i try to boot:

If i use recovery mode -> resume, it works.

Normal boot without the NVIDIA driver works.

Does anyone know how to fix this? :)

(Asus p8p67, Gigabyte GeForce GTX 560 Ti SOC)

Bug report on Launchpad

Same problem posted here with log files ubuntuforum

Try to completely remove your nvidia drivers from your system:

sudo apt-get purge nvidia*

Remove your xorg.conf

sudo rm /etc/X11/xorg.conf

Reinstall xorg completely

sudo apt-get install --reinstall xserver-xorg-core libgl1-mesa-glx:i386 libgl1-mesa-dri:i386 libgl1-mesa-glx:amd64 libgl1-mesa-dri:amd64

Re-configure Xorg

sudo dpkg-reconfigure xserver-xorg

Reboot

sudo reboot

You should be greeted with lightdm, this will default everything x the same way a fresh install would.

After this you can try installing the drivers again using the 'Additional Drivers' tool in Ubuntu but if those drivers don't work you can test the latest drivers from the x-swat ppa

sudo apt-add-repository ppa:ubuntu-x-swat/x-updates
sudo apt-get update
sudo apt-get install nvidia-current

Note - if the above doesn't work - try also using the PAE kernel

sudo apt-get install linux-headers-generic-pae

(tip received by @Scott)

I could fix this issue by
logging in at tty1, purging nvidia,
rebooting,
logging in again at tty1 (killing the graphical interface at tty7 if needed), and installing a previously downloaded drive (from nvidia official suite).