So the problem isn't with the nVidia drivers...
You have to install X version 4. 3.3.6 (which might be the default for generic VGA cards) will not work, this is probably your problem. What does X -version tell you?
Edit: Did you change the /etc/X11/XF86Config-4 file, like the README says to do? That should, assuming you do have X version 4 or greater, do the "change".