When I try and sh the nvidia driver, I get an error message saying that xserver must be stopped first. I already tried hitting CTRL+ALT+BKSPC, xserver stops for a second and then restarts. It logs me out and then the login manager appears.

You know, you might be right though, maybe I am doing something wrong. In all of the other posts I've seen, nobody talks about stopping xserver. But maybe they assume thats so easy to do they don't mention it.

I'll try hitting TAB at the Lilo prompt.