How to install nVidia Optimus driver

I had the same problem with an Lenovo Z570 Laptop when trying to install NVIDIA GTX 540M Drivers for Windows 7 64bit edition. This solution really worked for me.

When running the NVIDIA Install Program I got the error:

NVIDIA Installer cannot continue
This graphics driver could not find compatible graphics hardware

The reason for this error is that the specific device ID for your graphics card does not show up in any of the INF setup files. More on this later.
The way around this is to manually add your device ID to the INF file so it shows up when the setup programs checks for "compatible hardware"

Steps:
1. Get your device ID: click on CONTROL PANEL, then CLICK on SYSTEM, then CLICK on DEVICE MANAGER
2. Under Other Devices/ (or if your video card already has a driver under Display Adapter) click on Video Adapter
3. Click on Details, Device Instance Id should already be selected
4. You will see something similar to this:

PCI\VEN_10DE&DEV_0DD1&SUBSYS_20421043&REV_A1\ 4&30DE1B

This has the detail about your specific video card maker, chipset and model

For instance in my system

VEN_10DE tells me the Vendor is 10DE which is the Vendor ID for NVIDIA
DEV_0DD1 tells me the Chipset is 0DD1 which is the Chipset GTX 460M
SUBSYS_20421043 tells me that this is the Specific MODEL GTX 460M in the Asus 73JW Laptop

5. If you haven't already done so then MANUALLY Download the latest NVIDIA driver for your video card from the NVIDIA website and run the install program. It will give your the error : "This graphics driver could not find compatible graphics hardware" Don't Panic.

6. GOTO the install directory. The default will be something like:

c:\nvidia\DisplayDriver\275.50\WinXP\ English\Display.Driver\
or
c:\nvidia\DisplayDriver\260.63\WinXP\ International\Display.Driver\

7. there will be many INF files there of the type:

nvaa.inf
nvac.inf
nvam.inf
nvao.inf
nvbl.inf

etc...

8. Pick any one of them (I picked nvam.inf) and make a backup copy then open the original in NOTEPAD or your favourite text editor
9. Scroll down until you see lines like:

[NVIDIA_Devices.NTx86.5.1]
%NVIDIA_DEV.0405.01% = Section001, PCI\VEN_10DE&DEV_0405&SUBSYS_15D21043
%NVIDIA_DEV.0405.02% = Section001, PCI\VEN_10DE&DEV_0405&SUBSYS_16341043
%NVIDIA_DEV.0407.01% = Section001, PCI\VEN_10DE&DEV_0407&SUBSYS_080117FF
%NVIDIA_DEV.0407.02% = Section002, PCI\VEN_10DE&DEV_0407&SUBSYS_15881043
%NVIDIA_DEV.0407.03% = Section003, PCI\VEN_10DE&DEV_0407&SUBSYS_16181043
%NVIDIA_DEV.0407.04% = Section004, PCI\VEN_10DE&DEV_0407&SUBSYS_16321043
%NVIDIA_DEV.0407.05% = Section001, PCI\VEN_10DE&DEV_0407&SUBSYS_17A21043
%NVIDIA_DEV.0407.06% = Section005, PCI\VEN_10DE&DEV_0407&SUBSYS_3D7B17AA
%NVIDIA_DEV.0408.01% = Section001, PCI\VEN_10DE&DEV_0408&SUBSYS_19021043

These files are for the most part listed BY the four digit HEXidecimal number that appears after DEV.

10. NOW CAREFULLY scroll down to the section that is similar to your chipset / DEV number

%NVIDIA_DEV.0CB1.01% = Section041, PCI\VEN_10DE&DEV_0CB1&SUBSYS_203C1043
%NVIDIA_DEV.0DEE.02% = Section042, PCI\VEN_10DE&DEV_0DEE&SUBSYS_15621043
%NVIDIA_DEV.0DEE.04% = Section042, PCI\VEN_10DE&DEV_0DEE&SUBSYS_15A21043

11. Take a look at this pattern. You will make a DEVICE ID for your Video Adapter and insert it here

The first part is the same for everyone:
%NVIDIA_DEV.

From Step 4
my DEV is 0DD1

so my device id so far is:
%NVIDIA_DEV.0DD1.01%

NOTE: id there is already DEVs same as yours then your line will be the next increment ie...
%NVIDIA_DEV.0DD1.02%, or %NVIDIA_DEV.0DD1.03%, etc

for the section just make it the same as the section where you're inserting it so I have:
%NVIDIA_DEV.0DD1.01% = Section042,

the next part is the same for everyone so you will have:
%NVIDIA_DEV.0DD1.01% = Section042, PCI\VEN_10DE&DEV_

add the rest (your DEV and SUBSYS numbers) so it matches your DEVICE ID and your finished device ID should look similar to this:

%NVIDIA_DEV.0DD1.01% = Section042, PCI\VEN_10DE&DEV_0DD1&SUBSYS_20421043

12. NOW SCROLL DOWN to the [Strings] section it will look like this:

[Strings]
DiskID1 = "NVIDIA Windows 2000/XP (32 bit) Driver Library Installation Disk 1"
NVIDIA = "NVIDIA"
NVIDIA_DEV.0405.01 = "NVIDIA GeForce 9500M GS"
NVIDIA_DEV.0405.02 = "NVIDIA GeForce 9500M GS "
NVIDIA_DEV.0407.01 = "NVIDIA GeForce 8600M GT"
NVIDIA_DEV.0407.02 = "NVIDIA GeForce 8600M GT "
NVIDIA_DEV.0407.03 = "NVIDIA GeForce 8600M GT "
NVIDIA_DEV.0407.04 = "NVIDIA GeForce 8600M GT "
NVIDIA_DEV.0407.05 = "NVIDIA GeForce 8600M GT "
NVIDIA_DEV.0407.06 = "NVIDIA GeForce 8600M GT "


Same as before add a line in for your Video card:

NVIDIA_DEV.0CB1.01 = "NVIDIA GeForce GTS 360M"
NVIDIA_DEV.0DD1.01 = "NVIDIA GeForce GTX 460M - KAPs INF MOD"
NVIDIA_DEV.0DEE.02 = "NVIDIA GeForce GT 415M "
NVIDIA_DEV.0DEE.04 = "NVIDIA GeForce GT 415M "

NOTE: id there is already DEVs same as yours then your line will be the next increment ie...
NVIDIA_DEV.0CB1.01 = "NVIDIA GeForce GTS 360M"
NVIDIA_DEV.0DD1.01 = "NVIDIA GeForce GTX 460M"
NVIDIA_DEV.0DD1.02 = "NVIDIA GeForce GTX 460M - KAPs INF MOD"
NVIDIA_DEV.0DEE.02 = "NVIDIA GeForce GT 415M "
NVIDIA_DEV.0DEE.04 = "NVIDIA GeForce GT 415M "


13. SAVE FILE

14. If you have the file ListDevices.txt open it and add a line under the appropriate section

15. GO back and manually run setup.exe from where the NVIDIA files where extracted:
NOTE: DO NOT RUN THE DOWNLOADED APPLICATION OR YOUR WILL OVERWRITE EVERYTHING YOU'VE JUST DONE!

For Example Your setup program may be here:

c:\nvidia\DisplayDriver\260.63\WinXP\ International\setup.exe


THATS IT YOUR DRIVER WILL BE INSTALLED...ENJOY