been searching the web trying to sort out this nightmare of an error which can render gaming impossible, have tryed this myself and although haven't tested it for long seems to have cleared up the issue.

so found this yesterday try at your own risk,


nvlddmkm.sys has stopped responding and has recovered or something similar

Its a software issue and not a driver issue.

Method

Note: I am just explaining it as simply as I can. U can modify the solution so it is more precise, if you wish. I just wanted to fix the problem with the minimum of trouble.

1. Turn UAC off. If you like it, then you can keep it running.
2. Uninstall any Nvidia drivers, and delete the remaining files from Program Files (the ones windows lets you delete)
3. Restart the PC into safe mode - (F8 at boot)
4. Find any remaining NVidia driver files (normally start with nv) and delete them.
5. Reboot into normal mode Vista
6. Using Explorer or open My Computer and browse C:\Windows\
7. Right-Click on System32 folder and click ‘search’
8. Enter NV*.sys
9. This will show you all the Nvidia system files in the folder. The ones we are interested in is the ‘nvlddmkm.sys’ and how many copies we have.
10. If you tried multiple install/uninstall you will a few copies of it. I had 19 copies. If you look at the location, they were all in the ‘FileRepository’ folder under different subfolder. Something like nv_as***, nv_io***, etc
11. Note down the name of the sub folders where the file is located, nv_as***
12. So we now know that we have X copies of the nvlddmkm.sys file and what folders they are located in under the FileRep folder. There might be one under the main system32 folder as well. Note it down.
13. Vista has a totally awesome function. ACLs for network geeks…Access-Control Lists or Access-Lists or whatever you want to call them
14. Browse to Accessories from the Start menu (win icon>all programs)
15. Right-Click on command and click ‘Run as Admin’
16. OK so in our Admin CMD window we type the following commands in sequence
17. takeown /f C:\Windows\System32\DriverStore\FileRepository\*.*
18. The command above will give you ownership of all the files under the FileRep folder
19. cacls C:\Windows\System32\DriverStore\FileRepository\*.* /G Username:F
20. Replace username with your windows account name or login name
21. Like magic we are done. Oh and if your wondering…u cant do the above via GUI. Windows will give you permission but you would still not be able to delete anything ?
22. Earlier we did the search for the nvlddmkm.sys under the system32 folder. Do that again. In the search results, select all the instances of the nvlddmkm.sys file and delete them. OK, next is a totally optional step but I did it to make 100% sure it was all gone.
23. We noted down all the nv_as**, etc folder which had the nvlddmkm.sys file in it, delete the folders and empty your RecBin
24. Fire up your ForceWare drivers for the install. Disabled your Aero Vista before hand, it does make a difference.
25. Restart, login, set your resolution and enjoy the whole error-free nvlddmkm.sys effect.
26. Few notes. Make sure u can see the file extensions and system files are not hidden (blasphemous behaviour for techGeeks).

if you cant delete folders as i couldnt, assign another user as administrator use that name and delete from that users log in.

hope this is of help...

update..nope after a while still got the error, sorry..