Without hands on this is a bit hard....
If your win had not worked either I would have guessed the Dreamlinux CD changed the firmware (or BIOS) of you video card so it gets crazy
Could still be that....
Boot into Windows with the nvidia card in use
Change resolution to something half crazy - reboot
Change back to your preferred resolution - reboot and check that it works
Boot a live CD but not
the Dreamlinux one
If we are lucky (?) the card has been reset by Windows and possible to use with Linux again
Even when i have my windows hard drive installed and then i shut down and run a live cd of linux it still says the same error. It leaves at a terminal.
If this means only Win disk not the Linux hard disk it is not a Linux error, but as described above something in firmware, provided it used to work flawlessly