OK, let's back up and go over things point by point.
The nForce drivers for Linux only include drivers for the network and sound--they do not cover the video. To run X, you will need to download the nVidia video drivers for Linux. It sounds like you have done this, but it never hurts to check.
There are two components that must be installed for X to work. The first is a kernel module named NVdriver, and the second is the X driver (which needs the kernel module to work).
Once you have compiled and installed the appropriate drivers, you need to modify some configuration files.
Again, it sounds like you've done this. As a next step, I would recommend doing an /sbin/lsmod before starting X. If "NVdriver" does not show up, load it manually using "modprobe NVdriver".
If manually loading NVdriver does not help, the problem is probably in your XFree86 configuration. You will want to make sure you are loading XGL and are not loading DRI. Also, the driver name used should be "nvidia" instead of "nv".
If manually loading the NVdriver module helps, your problem is likely with /etc/modules.conf. This file should contain the following line:
alias char-major-195 NVdriver