I had a similar problem..
This fixed it for me:
1) nvidia-install --uninstall
2) rpm -q -a | grep XFree > /tmp/foo
3) (in a csh variant)
foreach x (`cat /tmp/foo`)
rpm -V $x
4) Go to your distribution and download any and all rpms that had any errors.
5) Go to the NVIDIA site and download the driver with version 4349 from the archive site.
6) Go to the console and issue 'telinit S'
7) rpm --erase --nodeps XXXX Where XXXX are the damaged rpms
8) rpm --install XXXX Where XXXX are the damaged rpms you downloaded
9) Run the script from nvidia ONCE and only ONCE.
10) Double check the XF86Config.
This fixed mine. I wasnt able to get GLX working with the new driver, and when I put 'nvidia' instead of 'nv' in my config with the new driver, my X freaked out. I got regular X with 'nv' but not glx. I think the new driver is just bugged for redhat.