Nouveau Status Update
The free NVIDIA driver (the nouveau project) status page has been updated recently.
It seems they have a working 2D driver and the 3D driver has been reported as now compiling.
They are looking for testers with GeForce 8800-Series video cards. Join #nouveau on irc.freenode.net if you're able and willing to help.
nouveau merged into mainline trees
So it's merged into mesa and drm main trees.