I have had almost exactly the same problem trying to install SuSE Linux 9.0 on a Sony Vaio desktop. The PC configuration
1.99 GHz AMD Athlon Processor
480 MB RAM
NVIDIA GeForce2 Integrated GPU display adapter
NEC MultiSync LCD1700V
I followed the Nvidia Installer HOWTO and downloaded and installed the graphics driver thought YaST Online Update. When I try to test the graphics setup, it blows out of the Xserver, and I get a text screen with a number of messages, some with errors, and a frozen computer. I can't even get out of it by hitting ctrl-alt-delete. I have to cut the power from the computer and start all over. When I let it reboot from the hard drive, after it tries to start the Xserver again, I get nothing - and a frozen computer. I cannot find a driver for this monitor, so I tried to pick the closest one, but it's nearly impossible to test different configurations because I have to reboot each time one of them doesn't work.
Is this a graphics driver problem or a monitor compatibility problem?
Thanks!