I found my answer on askubuntu.com. By adding the ppa from “xorg crack pushers” team I solved my display issues! There is one big issue though, you might lose access to Unity 3D.
I think Unity 3D does not like xorg-edgers updates. But, I use Gnome-shell and so, not being able to use Unity-3D is fine.
So, here is what I did:
sudo add-apt-repository ppa:xorg-edgers/ppa
sudo apt-get update
sudo apt-get install nvidia-current
My old driver was removed and the current driver 295.20 was installed.
After that, when I logged into Unity 3D, all that loaded was the wallpaper.
So, I went to one of the tty's. To get to the tty's, press the following keyboard combination:
I then logged back in. gnome-shell or Unity 2D or KDE all worked fine.
nVidia X server settings works like it should and I set my Display from 1024x768 to 1280x1024.
You have to purge xorg-edgers from your system to get Unity 3D to work again.
Unity Doesn't run after upgrading via xorg-edgers
I will wait for Ubuntu 12.04 to see if Unity 3D works for me again!