I followed the following steps and got back my init 5 working
sh NVIDIA-Linux-x86-1.0-9755-pkg2.run --x-module-path=/usr/lib/xorg/modules/ -q
Check that nvidia modules (libnvidia*) exist in /usr/lib/xorg/modules
step 3 : configure x.org
sax2 -r -m 0=nvidia (0 is a digit, not a letter).
start the x-server (init 5)
Does installation of nvidia driver suffice to install compiz/ compiz fusion package install and running? Or is there a different driver for nvidia-compiz combination.
FYI I haven't researched much into this topic yet but my next step would be to get the compiz up and running. Only after that will I enjoy the Nvidia graphics to the fullest on my favourite Linux distribution.
The support here was quite fast. I appreciate this a lot.