Comment 18 for bug 251107

Same problem.
Before the X error message:
"Running DKMS auto installation service for kernel 2.6.27-7-generic
  nvidia (96.43.05) [fail]"
---
"sudo dpkg-reconfigure nvidia-96-kernel-source" :

Removing all DKMS Modules
Done.
Adding Module to DKMS build system
driver version= 96.43.05
shell-init: error retrieving current directory: getcwd: cannot access parent directories: No such file or directory
Doing initial module build
shell-init: error retrieving current directory: getcwd: cannot access parent directories: No such file or directory
chdir: error retrieving current directory: getcwd: cannot access parent directories: No such file or directory
Error! Bad return status for module build on kernel: 2.6.27-7-generic (i686)
Consult the make.log in the build directory
/var/lib/dkms/nvidia/96.43.05/build/ for more information.
Installing initial module
shell-init: error retrieving current directory: getcwd: cannot access parent directories: Nincs ilyen fájl vagy könyvtár

Error! Could not locate nvidia.ko for module nvidia in the DKMS tree.
You must run a dkms build for kernel 2.6.27-7-generic (i686) first.
Done.