xinerama problems after 11-04-beta install - GUI wont launch or doesnet function propperly

A few days ago i upgraded my computer to Ubuntu 11.04 beta with the command "update-manager -d" As told by Ubuntu.com. The upgrade went smoothly and when it was finished i was prompted to reboot. After the reboot the problems came. They are a bit strange and you can bypass them with some settings but the natty navigation menu disappears. This is what happens with different configurations.

From power on to login screen all functions normally, but after login you get different results depending on your settings of launch. These are the settings you find at the bottom of the screen when you enter your password.

When the computer is launched in "Ubuntu" mode the desktop background appears but the startup sound does not come and the navigation menus doesn’t launch.

If the computer is launched in "Ubuntu classic" (Of "classic Ubuntu, cant remember for sure) the background appears on one of the monitors with the two panel navigation and one monitor remains black. But the mouse reacts on what is done on the other monitor so if i click the upper left corner on the left display the menu on the right display will open. The mouse in visible on both monitors and can be moved between them.

If the computer is started in "Ubuntu classic (No effects) the computer functions as normal.

If the computer is started in "Safe mode" the computer functions as normal.

if one screen is disabled in the Nvidia control panel the system operates normally with the new Natty style navigation, Though it is somewhat unstable and wants to send bug reports but fails to initiate the password dialogue.

The windows partition of the computer works without problems when booted from with GRUB.
The computer functions normally until the login window.
I have a 2 monitor, one graphics card setup.

I have a Nvidia GeForce GTS250 Grapics card.

Random specs:
2GB RAM DDR1
AMD athlon 64 x2 dual core 5200+
Gnome version: 2.32.1
Nvidia x server settings version infos
Server Version Number: 11.0
Server Vendor String: The X.Org Foundation
Server Vendor Vetrsion: 1.10.0 (11000000)
NV-CONTROL Version: 1.26
NVIDIA Driver Version 270.30
Operating System: Linux-x86

***Description ends here - Long conf file following***

X.Org configuration file (/etc/X11/xorg.conf)

# nvidia-settings: X configuration file generated by nvidia-settings
# nvidia-settings: version 270.29 (buildd@roseapple) Fri Feb 25 14:43:24 UTC 2011

# commented out by update-manager, HAL is now used and auto-detects devices
# Keyboard settings are now read from /etc/default/console-setup
#Section "InputDevice"
#
# # generated from default
# Identifier "Mouse0"
# Driver "mouse"
# Option "Protocol" "auto"
# Option "Device" "/dev/psaux"
# Option "Emulate3Buttons" "no"
# Option "ZAxisMapping" "4 5"
#EndSection
# commented out by update-manager, HAL is now used and auto-detects devices
# Keyboard settings are now read from /etc/default/console-setup
#Section "InputDevice"
#
# # generated from default
# Identifier "Keyboard0"
# Driver "kbd"
#EndSection

Section "ServerLayout"

# Removed Option "Xinerama" "1"
# Removed Option "Xinerama" "0"
# Removed Option "Xinerama" "1"
# Removed Option "Xinerama" "0"
# Removed Option "Xinerama" "1"
# Removed Option "Xinerama" "0"
# Removed Option "Xinerama" "1"
# Removed Option "Xinerama" "0"
# commented out by update-manager, HAL is now used and auto-detects devices
# Keyboard settings are now read from /etc/default/console-setup
# InputDevice "Keyboard0" "CoreKeyboard"
# commented out by update-manager, HAL is now used and auto-detects devices
# Keyboard settings are now read from /etc/default/console-setup
# InputDevice "Mouse0" "CorePointer"
# Removed Option "Xinerama" "1"
# Removed Option "Xinerama" "0"
# Removed Option "Xinerama" "1"
# Removed Option "Xinerama" "0"
    Identifier "Layout0"
    Screen 0 "Screen0" 0 0
    Screen 1 "Screen1" RightOf "Screen0"
    InputDevice "Keyboard0" "CoreKeyboard"
    InputDevice "Mouse0" "CorePointer"
    Option "Xinerama" "1"
EndSection

Section "Files"
EndSection

Section "InputDevice"

    # generated from default
    Identifier "Keyboard0"
    Driver "kbd"
EndSection

Section "InputDevice"

    # generated from default
    Identifier "Mouse0"
    Driver "mouse"
    Option "Protocol" "auto"
    Option "Device" "/dev/psaux"
    Option "Emulate3Buttons" "no"
    Option "ZAxisMapping" "4 5"
EndSection

Section "Monitor"

    # HorizSync source: edid, VertRefresh source: edid
    Identifier "Monitor0"
    VendorName "Unknown"
    ModelName "HP L1740"
    HorizSync 30.0 - 83.0
    VertRefresh 50.0 - 76.0
    Option "DPMS"
EndSection

Section "Monitor"

    # HorizSync source: edid, VertRefresh source: edid
    Identifier "Monitor1"
    VendorName "Unknown"
    ModelName "FUS A19-2A"
    HorizSync 31.0 - 81.0
    VertRefresh 56.0 - 75.0
    Option "DPMS"
EndSection

Section "Device"
    Identifier "Device0"
    Driver "nvidia"
    VendorName "NVIDIA Corporation"
    BoardName "GeForce GTS 250"
    BusID "PCI:1:0:0"
    Screen 0
EndSection

Section "Device"
    Identifier "Device1"
    Driver "nvidia"
    VendorName "NVIDIA Corporation"
    BoardName "GeForce GTS 250"
    BusID "PCI:1:0:0"
    Screen 1
EndSection

Section "Screen"

# Removed Option "metamodes" "CRT-0: nvidia-auto-select +0+0"
# Removed Option "metamodes" "CRT-0: 1920x1080 +0+0"
# Removed Option "metamodes" "CRT-0: nvidia-auto-select +0+0"
    Identifier "Screen0"
    Device "Device0"
    Monitor "Monitor0"
    DefaultDepth 16
    Option "TwinViewXineramaInfoOrder" "CRT-0"
    Option "TwinView" "0"
    Option "metamodes" "CRT-1: nvidia-auto-select +0+0"
    SubSection "Display"
        Depth 16
    EndSubSection
EndSection

Section "Screen"

# Removed Option "metamodes" "CRT-1: nvidia-auto-select +0+0"
# Removed Option "metamodes" "CRT-1: 1920x1080 +0+0"
# Removed Option "metamodes" "CRT-1: nvidia-auto-select +0+0"
    Identifier "Screen1"
    Device "Device1"
    Monitor "Monitor1"
    DefaultDepth 16
    Option "TwinView" "0"
    Option "TwinViewXineramaInfoOrder" "CRT-0"
    Option "metamodes" "CRT-0: nvidia-auto-select +0+0"
    SubSection "Display"
        Depth 16
    EndSubSection
EndSection