Using the latest Nvidia drivers here on a GTX 260 and a BFG 9600GT OC on other rig and no issues. When installing new driver i would recommend getting Driver Sweeper. Uninstall your old driver like normal thru the uninstaller. Then boot into safe mode and run driver sweeper have it scan for leftover files of the driver your uninstalling. Clean those up and reboot normaly and install the new drivers. I know most of you know this but others dont realize how leftover files from old drivers play hell on new driver installs.
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