Re: xorg.conf doesn't appear to be read
To answer my own post. Doing research I found that Nvidia will not automatically start its own saved extension available from "nvidia-settings". There are a few ways to achieve this. One way is to add the command "nvidia-settings -l" into the ".xinitrc" file. My computer has multiple links and files so I opted not to use this method. What I decided to do was add that command into my "/home/.profile" file. The "-l" option for "nvidia-settings" just means read and load the ".nvidia-settings-rc" saved using the "nvidia-settings" utility. This worked for me.
One last method, it appears Nvidia/Xorg does read the "xorg.conf" file, its just when saved from the "nvidia-settings" utility, it doesn't add any extensions. You have to add them manually.
For the cursor shadow to work I had to add following line into /etc/X11/xorg.conf file
Option "CursorShadow" "true"
Also, the "nvidia-settings -l" method above will also get the cursor shadow working.
My take on this, the "nvidia-settings" utility should have a check box to ask if you would like these setting to automatically start at boot by adding its own entry to /home/.profile file or globally by adding it to .xinitrc file.