Nvidia proprietary drivers fallback test failed for geforce 7000m

From http://testcases.qa.ubuntu.com/Hardware/X/ProprietaryDrivers
"Fallback testing" section

After having removed the ko file, the system does not fall back to the open source driver as expected (Xorg fails to start). The screen is black though ttys are available (CTRL+ALT+Fx).

ProblemType: Bug
DistroRelease: Ubuntu 11.04
Package: nvidia-current 270.30-0ubuntu3
ProcVersionSignature: Ubuntu 2.6.38-7.36-generic 2.6.38
Uname: Linux 2.6.38-7-generic x86_64
NonfreeKernelModules: nvidia
.proc.driver.nvidia.gpus.0: Error: [Errno 21] Is a directory: '/proc/driver/nvidia/gpus/0'
.proc.driver.nvidia.registry: Binary: ""
.proc.driver.nvidia.version:
 NVRM version: NVIDIA UNIX x86_64 Kernel Module 270.30 Fri Feb 25 14:34:55 PST 2011
 GCC version: gcc version 4.5.2 (Ubuntu/Linaro 4.5.2-6ubuntu4)
Architecture: amd64
CompizPlugins: [core,bailer,detection,composite,opengl,decor,mousepoll,vpswitch,regex,animation,snap,expo,move,compiztoolbox,place,grid,imgpng,gnomecompat,wall,ezoom,workarounds,staticswitcher,resize,fade,unitymtgrabhandles,scale,session,unityshell]
CompositorRunning: compiz
Date: Wed Mar 23 10:11:03 2011
DistUpgraded: Fresh install
DistroCodename: natty
DistroVariant: ubuntu
DkmsStatus: nvidia-current, 270.30, 2.6.38-7-generic, x86_64: installed
GraphicsCard:
 nVidia Corporation C67 [GeForce 7000M / nForce 610M] [10de:0533] (rev a2) (prog-if 00 [VGA controller])
   Subsystem: Acer Incorporated [ALI] Device [1025:0127]
InstallationMedia: Ubuntu 11.04 "Natty Narwhal" - Alpha amd64 (20110321)
JockeyStatus: xorg:nvidia_current - NVIDIA accelerated graphics driver (Proprietary, Enabled, In use)
MachineType: Acer, inc. Aspire 4520
ProcEnviron:
 LANGUAGE=en_US:en
 LANG=en_US.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-2.6.38-7-generic root=UUID=c6e210d4-a826-44e6-94f0-1c00146b96f5 ro quiet splash vt.handoff=7
Renderer: Unknown
SourcePackage: nvidia-graphics-drivers
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 05/14/2008
dmi.bios.vendor: Acer
dmi.bios.version: v1.3632
dmi.board.name: Mono
dmi.board.vendor: Acer, Inc.
dmi.board.version: Not Applicable
dmi.chassis.type: 1
dmi.chassis.vendor: Acer, Inc.
dmi.chassis.version: N/A
dmi.modalias: dmi:bvnAcer:bvrv1.3632:bd05/14/2008:svnAcer,inc.:pnAspire4520:pvrNotApplicable:rvnAcer,Inc.:rnMono:rvrNotApplicable:cvnAcer,Inc.:ct1:cvrN/A:
dmi.product.name: Aspire 4520
dmi.product.version: Not Applicable
dmi.sys.vendor: Acer, inc.
version.compiz: compiz 1:0.9.4-0ubuntu7
version.libdrm2: libdrm2 2.4.23-1ubuntu5
version.libgl1-mesa-glx: libgl1-mesa-glx 7.10.1-0ubuntu3
version.nvidia-graphics-drivers: nvidia-graphics-drivers N/A
version.xserver-xorg: xserver-xorg 1:7.6~3ubuntu11
version.xserver-xorg-video-ati: xserver-xorg-video-ati 1:6.14.0-0ubuntu4
version.xserver-xorg-video-intel: xserver-xorg-video-intel 2:2.14.0-4ubuntu4
version.xserver-xorg-video-nouveau: xserver-xorg-video-nouveau 1:0.0.16+git20110107+b795ca6e-0ubuntu6