The latest nVidia drivers (295.40) are broken for GeForce 6, 7 or 8800GTX/GTS cards -
see here.
So, until nVidia produce fixed drivers the choices are:
- Revert to the Nouveau driver, saying goodbye to Gnome 3 features which require accelerated graphics, or
- Install the 295.33 driver from nVidia, which will over-write some Xorg libraries potentially causing problems with future updates.
The 295.33 drivers are not available from RPMFusion for the latest Fedora 16 kernels. I started out going back to Nouveau, but eventually downloaded and installed the 259.33 drivers from nVidia - the issues caused will not be too difficult to fix...