This fix has been tested for the error "Display driver nvlddmkm stopped responding and has successfully recovered" on the Dell Inspiron 1520. Dell support can be thanked for the solution, I called them up and they were great.
The fix may also work for other computers, especially laptops as it is related to a Windows Vista Service called TMM (Microsoft Transient Multi-Monitor Manager). The problem is that the service keeps checking to see if you have an additional monitor plugged in and causes the screen to freeze, go black and return saying the infamous "Display driver nvlddmkm stopped responding and has successfully recovered".
So to fix the problem, first of all make sure you have the latest display drivers for your video card, for the Dell Inspiron 1520 go to the dell website, click on support and follow the prompts.
Also download the latest bios and install that.
Reboot and enter the bios utility by pressing F2 on the first screen. Then change from ACHI to ATA mode and switch Flash Cache Off.
Then uninstall the current video driver, reboot and then installing the latest video driver, reboot the computer again.
Then go to the control panel and click 'classic view' on the left. The click 'administrative tools'. Then open 'task scheduler'. On the left, expand the branch 'task scheduler library' by clicking on the little triangle on the left of it. Then expand 'microsoft', then 'windows', then click on 'mobile pc'. Then you should see the 'TMM' service on the right. Right click it and disable.
So in summary:
-Download Latest video driver
-Download and install latest Bios
-Change from ACHI to ATA mode in BIOS and switch Flash Cache Off
-Disable TMM service
-Uninstall video driver
-Install new video driver