I guess the first time you laucned the lshwd -id it stated that it would use driver NV for your "VGA compatible card" as you can read in my walkthrough i had same issue, and now it's trying to use the VESA driver since it can not find the NVIDIA drivers to use,
The issue turned that lshwd -id wasn't picking the right diver for this card because it always came back as unknown. I fixed this by tracing down where in the code it was selecting the driver and hacked a few lines in /usr/pluto/bin/Utils.sh to read
local VideoDriver=$(lshwd | grep ' VGA ' | head -1 | sed 's/^.*(\([^()]*\)).*$/\1/')
case "$VideoDriver" in
nv|vesa) PackageIsInstalled nvidia-glx && VideoDriver="nvidia" ;;
radeon|ati) PackageIsInstalled fglrx-driver && VideoDriver="fglrx" ;;
"") VideoDriver="nvidia" ;; # just-in-case default
Another issue was trying to install while using the PCI-E card, I had to do a fresh install of 6.10 and install LMCE, hack the script, reinstall the drivers (only worked when installed with Envy), switch the system over to the 6500 and manually edit my xorg.conf file (for some reason the nvidia-settings didn't configure the 6500, so I had to look up what the pci-e slot was and change it there).
Lots of hassle, I'd like to see the next revision be a little smarter and check for already installed video drivers instead of forcing it's own on the system.
HTH someone else!