According to log, X loaded. You have a 1280x1024 screen with (90,96) DPI fonts, ...
X cannot load any better than it did.
For using nVidia drivers, when splash screen shows, the nVidia drivers are loaded. What happens after that depends on you and Man*
I would look elsewhere for solution to problem.
One thing you can try is to kill X with CTRL-ALT-BKSP and when it drops you to terminal, start X using something like startxfce or startkde, etc... (details omitted) . That will bypass that *(^#*^ stupid login screen Man* has created to control how one does a login. IOW, it could be the Man* default login screen that is hanging. I have not used 2006 yet( got it on disk but ... ). They are probably using the KDE-clone they made for login as the default login screen. MANY have had trouble with it in the past...
Oh, you will need to be root do most any of that so be very careful!
If it helps, I ran TnT2 card on XFree and also with nVidia drivers for a long time(years) with Mandrakelinux from versions 7.x - 9.x. I have not used it in a long time but last time, with Man*9.1, it worked just fine. I think I used the native X drivers... (not nvidia). That system is under desk ...somewhere ... not on but I am sure if I turned it on, I would have same result as always.