Ubuntu 7.1 crashes on GeForce4 MX 440

am a veteran of Windows but new to Linux and I can not get Ubuntu 7.1 to run properly on my GeForce4 MX 440.
After a few minutes the system hangs, only the cursor works and the screen is full of moving lines. I have to perform a hard reset to get the PC running.

I downloaded NVIDIA-Linux-x86-96.43.01-pkg1.run
I exit X (I use "init 1" because telinit 3 gets me back to X)
I run it as root (sudo sh .....)

I get an error about the kernel (see attached log) and I AM BECOMING DESPERATE.

I have searched google, read forums but I can not find a solution.

nvidia-installer log file '/var/log/nvidia-installer.log'
creation time: Mon Oct 22 17:13:14 2007

option status:
  license pre-accepted : false
  update : false
  force update : false
  expert : false
  uninstall : false
  driver info : false
  precompiled interfaces : true
  no ncurses color : false
  query latest version : false
  OpenGL header files : true
  no questions : false
  silent : false
  no recursion : false
  no backup : false
  kernel module only : false
  sanity : false
  add this kernel : false
  no runlevel check : false
  no network : false
  no ABI note : false
  no RPMs : false
  no kernel module : false
  force SELinux : default
  no X server check : false
  force tls : (not specified)
  X install prefix : (not specified)
  X library install path : (not specified)
  X module install path : (not specified)
  OpenGL install prefix : (not specified)
  OpenGL install libdir : (not specified)
  utility install prefix : (not specified)
  utility install libdir : (not specified)
  doc install prefix : (not specified)
  kernel name : (not specified)
  kernel include path : (not specified)
  kernel source path : (not specified)
  kernel output path : (not specified)
  kernel install path : (not specified)
  proc mount point : /proc
  ui : (not specified)
  tmpdir : /tmp
  ftp mirror : ftp://download.nvidia.com
  RPM file list : (not specified)

Using: nvidia-installer ncurses user interface
-> You appear to be running in runlevel 1; this may cause problems. For exampl
   e: some distributions that use devfs do not run the devfs daemon in runlevel
   1, making it difficult for `nvidia-installer` to correctly setup the kernel
   module configuration files. It is recommended that you quit installation no
   w and switch to runlevel 3 (`telinit 3`) before installing.

   Quit installation now? (select 'No' to continue installation) (Answer: No)
-> License accepted.
-> No precompiled kernel interface was found to match your kernel; would you li
   ke the installer to attempt to download a kernel interface for your kernel f
   rom the NVIDIA ftp site (ftp://download.nvidia.com)? (Answer: No)
-> No precompiled kernel interface was found to match your kernel; this means
   that the installer will need to compile a new kernel interface.
ERROR: You do not appear to have libc header files installed on your system.
       Please install your distribution's libc development package.
ERROR: Installation has failed. Please see the file
       '/var/log/nvidia-installer.log' for details. You may find suggestions
       on fixing installation problems in the README available on the Linux
       driver download page at www.nvidia.com.