When trying to emerge nvidia-settings-1.0.7167, I came across the error mentioned in bug #123071. Ths is fixed in the latest versions of nvidia-settings, but it still occurs in older versions like 1.0.7167. Since lots of people with older nvidia cards are stuck using the older versions of nvidia-settings, nvidia-kernel, nvidia-glx etc., I think it might be a good idea to backport the modular X changes to the older ebuilds. I've attached a first attempt at this. Basically, i took the most-recent ebuild for nvidia-settings and made a few simple modifications to it. I'm no ebuild expert, so this is probably done incorrectly, but it works for me.
*** This bug has been marked as a duplicate of 127705 ***
CLOSED
I apologize for the duplicate bug reports, I accidently double-clicked the submit button.