The new nvidia kernel driver, compiles and installs to /lib/modules/YOUR_KERNEL/video, the previous one installed to /lib/modules/YOUR_KERNL/kernel/video. When the new (3123) is emerged it fails to remove the old one, and the autoloader grabs the old one first when loading the module, thus causing X to not start. deleting the old NVdriver from /lib/modules/YOUR_KERNL/kernel/video and rerunning depmod -a and reloading the modules makes things work OK.. NOTE: on this version of the nvidia driver I get much longer pauses in startup from "startx" to the nvidia logo being shown. previous release had an 18 second delay, this version has a 29 second delay (tested extensively with various options). I already filed a bug report with nvidia. contact me for more information.
Well, you should unmerge older versions. This change was already in -r1 of the previous version. I dont have problems with it being slower.