strange colors and hard system freeze after installing nvidia driver

First of all, I know that this post has been around in the forums but trust me I tried every single solution in other threads but none of them was successful with me.

I have a nvidia geforce 8400SE card so when I finished setting up xorg and kde (which worked fine together under the nv driver), I went to install the nvidia driver to have some performance and activate desktops effects but after installing and modifying the xorg.conf file, the system has hard freeze (really hard) as the cursor stops and keyboard not responding event when trying to change the virtual terminal, I hear the CPU fan speeds up and sometimes but not often the machine restarts after a while, the screen colors turn to something strange as this picture demonstrates.

http://img847.imageshack.us/img847/7360/photo0990.jpg

The only thing that works is the power button (as I disconnected the reset button for reasons).
it was always crashing at loading kde or when using the actual desktop at random situations and times.
a while ago I was trying to boot one more time and the system crashes at loading modules and stuff just after it says loading kdm4 and I recognized that the screen color transform was happening on the gray text!:\

and for the xorg.conf file it's exactly as the handbook explained in the setting up nvidia driver section, just changed the Driver from nv to nvidia .
 
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