I've had similiar issues. Some incorrect info here.
I had kmod-nvidia-PAE installed then read about how 'wonderful' akmod was.
So on a system with kmod working I did followingA:
yum erase kmod-nvidia*
removed a bunch of stuff.
yum install akmod-nvidia
installed bunch of stuff including some libraries that the erase had just removed
X fails after some gnashing I find message in /var/log/messages where akmod can't find kernel-PAE-devel.
I think kmod-nvidia-PAE installed kernel-devel a long time ago for me.
yum install kerenel-PAE-devel
reboot, x comes up
i make a test yum update and find that an update for kmod-nvidia-PAE is available
I do yet another yum erase kmod-nvidia*
yum complains that RPMDB was updated outside of yum. !!!
I then do
a new kernel goes in, no kmod-nvidia-PAE is installed.
reboot all is happy. X11 comes up, my nvidia driver working and yes
kmod-nvidia-PAE is again installed.
bottom line, as I understand it, if kmod-nvidia... blah is not available akmod-nvidia will build it's own version
at boot time, funny messages about fake root....
If kmod-nvidia.... is available at boot time, the akmod-nvidia magic installs it.