Just to share my experience with 7.1 B0.49 32-bit and nvidia:
Installed kernel-src. Downloaded the nvidia installer.
Rebooted to text mode and executed nvidia-installer. It detected nouveau and offered to disable it. I said yes.
Rebooted to text mode again, this time it was obvious nouveau was not active, as I got a standard VGA console.
Re-ran nvidia-installer, it built the module and created an xorg.conf.
Nvidia's xorg.conf did not work. Ran vxconf and it produced another non-working configuration.
Manually edited xorg.conf and got it working using "startx".
Reboot to GUI did not work. No X. I guess nouveau gets loaded from initrd?
Manually edited /boot/grub/grub.cfg to remove the initrd statement.
Reboot, no pretty boot splash but a working X with the nvidia driver.
System runs well. 
I don't know which version of VL you are using, but there is no selection in lilo to boot into text mode in either .iso from as far back as .45 to presently .49, regardless of arch. I can't read the nvidia installer where it would prompt to blackllist the nouveau, everything is overlapped after you click on the 1st "OK" (which by the way, is the only thing that you can actually see), the rest is pretty much hope and pray like mad Hell that you hit the right selection, and when all is done, it simply returns to the command prompt, so Nvidia never did get installed, and thus you have to reboot once again and slapt-get --install the nouveau.
on the .48 iso I could not read the prompts from the nvidia installer. Not even after uninstalling the nouveau and rebooting. The yes/no boxes overlapped, and the text was also overlapped. I know the installer pretty well, but I could not tell whether or not I had actually selected yes or no.
Same experience with .48, looks like .49 fixed that.
It did not fix that here, still the same bullshit.
You all need to keep in mind that not every user of VL is a "developer" or a "computer wiz" of any sort, and the "end users" are fucked if something doesn't go as it should and aren't able to get help otherwise.
Previously in 7.0 all we had to do was simply open gslapt, mark to uninstall nouveau, and apply it. Then we'd reboot into TUI ....yeah that's right, there was that option back then wasn't there? You confirmed you were at init3 and began the process of executing the Nvidia installer. When completed correctly, you could simply "reboot" (or init4) and all was fine and dandy. That was the easy way for the end users. Currently in 7.1 none of this is so.
And so that it doesn't sound as if I am bitching, because really I am..., I am glad this is working for you (anyone) however, I am reporting that it is not working for me. That's the whole purpose of testing isn't it? To find things that do not work as expected and report them for development. If in an event like this where it is worknig properly for someone and not for the other, it is of course the best thing to report both sides of the findings so that development knows where to start more accurately.
The thought of the end user shoulld ALWAYS be kept in mind within reason, throughout every stage of development, package building/installing, and testing, and so on. Otherwise, why not Slackware instead of VL?
cheers,
Masta