It is true that xorg 7.1 brought brand new driver ABI, and so the nvidia-glx should theoretically not work, but the fact is that it DOES work, and correctly. There's a thread on nvnews about that: http://www.nvnews.net/vbulletin/showthread.php?t=70476 Some people on the thread end are sharing their experience that it works. Also, somewhere on the same forum, i saw a Nvidia developer saying that the current drivers should work for the most part, they only generate a warning at X start. And they really do work. Thanks to this fact, it also seems there won't be a rush to have the new drivers with full 7.1 support out anytime soon. For that reason, i believe the blocker for xorg-7.1 & nvidia-glx-8762 should be removed, as it is uncessary, and instead replaced with some sort of I_KNOW_I_SUCK_FOR_USING_UNSTABLE_STUFF=1 emerge nvidia-glx, as this setup is keyword masked anyways, and most people using it should already be aware that they aren't running stable stuff, so a simple warning about the risks that it might not work (but most probably will) should be enough, and before this goes stable, new drivers will already be out. At least i am running that setup now, and it works without problems, and according to all the forums, i believe many more people do.
No, it doesn't... Search bugzilla.