i have same issue on BT5 r2 which has 3.2.6 kernel on ubuntu 10.04...only solution right now i found (with optimus nvidia & intel graphics) is download driver from source http://ubuntuforums.org/showthread.php?t=1891025
try mrSpike's commands and if u have optimus GPU u can install bumblebee-nvidia...this wont solve any problems if u want to overlock your card or use nvidia-settings!!this is an Nvidia-Linux problem!
Be sure to uninstall first the driver Nvidia....295.20.run --uninstall
then run the commands from the link...see what happens gl!