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[Higgs Boson <lionel@xxxxxxxxxxxx>]

I was also experiencing the same issue with saving to xorg.conf via "sudo nvidia-settings" command.
"nvidia-xconfig yeiled same results.. Peculiar !  I then decided to try v.173 drivers with no success 
(flashing screen before and after "sudo nvidia-xconfig" and "sudo nvidia-settings") I then had to
boot in console mode to remove v.173 drivers. using "sudo apt-get remove nvidia-glx-173"

I then used "sudo apt-get install nvidia-glx-185"  to reinstall drivers in console mode (no X) . Works!
Server Layout option was present in etc/x11/xorg.conf after install and reboot without the need for
"sudo nvidia-xconfig" and "sudo nvidia-settings" commands..

  Running dual monitors perfectly after configuring them through the nvidia-settings gui and saving
 (sudo priv necessary ....as always)

 ****  I would suggest this method  if previous tactics fail.  Cheers!
****

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nvidia-settings crashes when user clicks Save To X Configuration File
https://bugs.launchpad.net/bugs/286424
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