Here is more information on this problem from Ubuntu.
Specific to this issue
Bug #136838 in linux-restricted-modules-2.6.22 (Ubuntu)
wrong nvidia kernel module (7185 instead of 100.11.14) loads at boot time (manual install)
Specific to the nvidia-glx-new driver
[nvidia-glx-new] Driver is missing libwfb breaking X on 8000 series cards
The 9755 nvidia driver includes a new file called libnvidia-wfb.so.1.0.9755 and two symbolic links to that file, libnvidia-wfb.so.1 and libwfb.so.1. These files are not included in the linux-restricted-modules package.
Note: After skimming through this bug report it is apparently not limited to 8000 series cards. Many people, including myself, are experiencing the same problems.
More useful information
From Ubuntu Documentation
HowTo manually install the downloaded Nvidia drivers (not recommended by Ubuntu)
This guide is for installing the NVIDIA closed source binary drivers on a system running an NVIDIA graphics card.
So, the bottom line is the proprietary nvidia-glx drivers are broken for a fair number of us unfortunates. I sincerely hope that this info is useful to others!
Should I also file a bug report with Nvidia?