Finally got an old linux version running on my pc, with fully working nvidia driver, though only bootable by using old boot loader installed on usb drive. As described in my earlier post, only default (2.6.x) kernels would work with the driver version, where the backported (3.0.x) would fail. Also had to run nvidia-xconfig as root to complete the setup, before it was unaccelerated display with little resolutions available. The screenshot shows a minimal xfce4 desktop running with the default theme.