The Nouveau DRM has entered the Linux 2.6.33 kernel to much excitement, which is complete with its kernel mode-setting support for nearly all NVIDIA graphics cards. No official xf86-video-nouveau driver release has yet been made, but one should come in 2010 after the Linux 2.6.33 kernel is available.
Red Hat's Ben Skeggs though has started deleting non-KMS code (Git commit) that is trimming this NVIDIA X.Org driver by thousands of lines of code. While user-space mode-setting will no longer work, kernel mode-setting is the superior solution and is the future. Intel had also recently dropped support for user-space mode-setting.