[CentOS] CentOS 3.8 Kernel Update with NVIDIA Video Card

I need some advice. I updated the kernel but when I restarted my 
computer I got the following error message:

--
I cannot start the X server (your graphical interface). It is likely 
that it is not set up correctly. ... Failed to load the NVIDIA kernel 
module!
--

I've started my computer using the old kernel. I found out that there's 
a new nvidia driver so I will also update it. I've downloaded this driver.

I can think of two ways to solve this problem but I'd rather have some 
expert advice. What's the best way to boot with the new kernel, install 
the nvidia driver and of course update the NVIDIA kernel module?

Thanks in advance,
Corwin Burgess