Hi kernel 2.6.16.14-1 introduces a problem with nvidia packages, please consider to rebuild the module after update to new kernel. update kernel, rerun pacman -S nvidia
if you already encounter a kernel panic, use this to solve: boot your kernel with lilo or grub with these parameters load_modules=off init s then login with your root password and then run: pacman -S nvidia reboot
greetings tpowa