Same problem with Gentoo
This is another 'me too'. I just bought a Shuttle SN41G2 with the Nforce2 chipset, and installed the latest Gentoo Linux from their CD's, which also included the latest Nvidia drivers. The audio and network work perfectly, but the video is showing the same problem I've seen posted here. If I use the open-source version ("nv" as the device in XF86config), X starts up with no problems. But if I change it to "nvidia" (and load "glx"), the screen seems to freeze in text mode with a bunch of random graphics characters, and all I can do is reboot with ctrl-alt-delete. There are no errors in the Xfree log file, and the last line indicates that it's about to set the mode to 1280x1024 (what I specified). I've tried various suggestions that people have posted, but none have any effect.
Since this is a brand-new installation, I'm willing to experiment, but I'm out of suggestions.