I've been struggling with this bug the whole day. I've managed to install following the first workaround proposed, but after I install the nvidia-current drivers I end up in a small 640x480 screen and I can't select the nvidia drivers with jockey-text.
As mentioned in the bug description this doesn't seem to happen in 11.10, so I dug into my CD collection and found an old 11.04. I'm not done testing it, but so far so good.
But now I'm very afraid to update stuff. How can I prevent Ubuntu from upgrading? Or, should I look out and only not upgrade certain packages related to the mentioned bug?