Comment 92 for bug 655078

@Bernhard:
Thank you! That worked. I had to get around it a little, but it worked really well.

Since I am subscribed to multiple threads for this issue, I will post what I have done. I am on VPCS117GG.

1) Remove all nvidia packages
2) download the files and install this https://launchpad.net/ubuntu/+source/nvidia-graphics-drivers/256.53-0ubuntu3/+build/1973339.
3) download the package nvidia-settings_256.53-0ubuntu1_amd64.deb (follow #66)
4) install all of them using `sudo dpkg -i *.deb`
5) This is where I tried something different, I read somewhere that you MUST use linux kernel 2.6.36, go to http://kernel.ubuntu.com/~kernel-ppa/mainline/v2.6.36-maverick/ (thanks to Artem161 from http://code.google.com/p/vaio-f11-linux/wiki/NVIDIASetup). Download the appropriate architecture files. I downloaded headers, image and headers-amd64
6) Use the custom EDID option in /etc/X11/xorg.conf
*my edid file is located in /proc/acpi/video... your might be different.
    Option "ConnectedMonitor" "DPF-0"
    Option "CustomEDID" "DPF-0: /proc/acpi/video/IGPU/LCD0/EDID"
    Option "RegistryDwords" "EnableBrightnessControl=1" # For brightness control
7) This is your step 5,
   sudo update-alternatives --config gl_conf (I picked manual)
   sudo ldconfig
   sudo nvidia-xconfig
   sudo reboot

And yes. Finally this is working well.
Check http://code.google.com/p/vaio-f11-linux/wiki/NVIDIASetup [+] for more details