Ubuntu not using nVidia X Driver

[No1StoppedMe]

Just finally got my upgrade to the newest kernel to work and my resolution changed. Funny enough this is only hours after getting my login screen resolution problem solved. Anyways I went to open nVidia X Server to change the resolution again after the upgrade and I got this error:

You do not appear to be using the NVIDIA X driver. Please edit your X configuration file (just run `nvidia-xconfig` as root), and restart the X server.

I ran "sudo nvidia-xconfig" and got this:

Using X configuration file: "/etc/X11/xorg.conf".
Backed up file '/etc/X11/xorg.conf' as '/etc/X11/xorg.conf.backup'
New X configuration file written to '/etc/X11/xorg.conf'

But after when I restarted my computer and ran nVidia X Server again I got the same error as above. Any ideas?

[No1StoppedMe]

Here is my xorg config file:

# nvidia-xconfig: X configuration file generated by nvidia-xconfig
# nvidia-xconfig: version 295.40 (buildmeister@swio-display-x86-rhel47-06.nvidia.com) Thu Apr 5 22:40:54 PDT 2012

# nvidia-settings: X configuration file generated by nvidia-settings
# nvidia-settings: version 295.33 (buildd@allspice) Fri Mar 30 13:37:33 UTC 2012

Section "ServerLayout"
Identifier "Layout0"
Screen 0 "Screen0" 0 0
InputDevice "Keyboard0" "CoreKeyboard"
InputDevice "Mouse0" "CorePointer"
Option "Xinerama" "0"
EndSection

Section "Files"
EndSection

Section "InputDevice"

# generated from default
Identifier "Mouse0"
Driver "mouse"
Option "Protocol" "auto"
Option "Device" "/dev/psaux"
Option "Emulate3Buttons" "no"
Option "ZAxisMapping" "4 5"
EndSection

Section "InputDevice"

# generated from default
Identifier "Keyboard0"
Driver "kbd"
EndSection

Section "Monitor"

# HorizSync source: edid, VertRefresh source: edid
Identifier "Monitor0"
VendorName "Unknown"
ModelName "SHARP HDMI"
HorizSync 15.0 - 48.0
VertRefresh 55.0 - 76.0
Option "DPMS"
EndSection

Section "Device"
Identifier "Device0"
Driver "nvidia"
VendorName "NVIDIA Corporation"
BoardName "GeForce 9400 GT"
EndSection

Section "Screen"

# Removed Option "metamodes" "1280x720_60 +0+0; nvidia-auto-select +0+0"
# Removed Option "metamodes" "1360x768 +0+0; nvidia-auto-select +0+0"
# Removed Option "metamodes" "1280x720 +0+0; nvidia-auto-select +0+0"
Identifier "Screen0"
Device "Device0"
Monitor "Monitor0"
DefaultDepth 24
Option "TwinView" "0"
Option "TwinViewXineramaInfoOrder" "DFP-1"
Option "metamodes" "1360x768 +0+0; nvidia-auto-select +0+0"
SubSection "Display"
Depth 24
EndSubSection
EndSection