BSOD at start up. Error with graphics driver 0x00000116 nvlddmkm.sys

Hello there,
So I am having some major issues with my desktop computer. Whenever I start up the computer, it shows the normal windows loading icon with a black screen (but the image looks a little pixelated and you can tell something is wrong), then goes directly into the BSOD displaying an error of:

attempt to reset the display driver and recover from timeout failed STOP: 0x00000116
nvlddmkm.sys

I am almost positive the nvlddmkm.sys driver is part of my Nvidia GeForce GTX 460 graphics card. After doing some research I found out that I could potentially update my graphics drivers and things would work. So I booted my computer is Safe Mode with Networking, went to the Nvidia website and downloaded my update. However when I attempted to install it, the Nvidia graphics driver update screen came up and did a System check and displayed this error message "Microsoft Visual C++ Redistributable packages for Visual Studio cannot be installed in safe mode." The issue is I cannot boot in normal mode because the BSOD comes up instantly, but it seems as though I cannot update the driver from safe mode. I have been looking around all the forums at similar issues, but have not been able to come up with a solution. I attached the dump in a zip. Any help would be greatly appreciated and let me know if you need any more information. Thanks!

Thanks for the response Boris! So I did as you suggested and was able to boot the computer up fine when plugged into the motherboard DVI slot. I went to the Microsoft website and downloaded all of the packages I needed. I then turned the computer off, switched the monitor's cord to the graphics card DVI port and turned the computer back on. The computer booted fine! (can hear it loading) However the monitors will not display no matter what I do. They say they are not connected. Is there a reason why switching from the motherboard DVI port and then to the graphics card DVI port might confuse things for the display? I tried rebooting multiple times and taking the graphics card out and putting it back in. Any suggestions?

Side Note: after I put the graphics card back in the first time and tried to turn on the computer, it beeped at my 5 times (this happened once before when one of my RAM cards died). So I removed a RAM chip and it booted up fine (I still could not see the display though). I still have 6 gigs of RAM left. I really don't think they are related at all, just unfortunate timing. I just wanted to give all the details of what happened

I did not update the driver that failed no, I just updated the Microsoft Visual C++ redistributable packages (it turns out some of them were corrupt). I plugged the graphics card back in and booted the computer normally and everything seemed to load without the BSOD (I am assuming this because I can hear the computer boot up and load for several minutes now, whereas before I would instantly get the BSOD and the computer would stop everything it was doing). So it seems the computer is booting now, so I can probably update my driver normally if I could just get the display to work properly. The redistributable packages seemed to have been causing the immediate error. Any suggestions for trouble shooting my monitor displays? Maybe the graphics card just died? Or the computer is confused because I used the DVI port connected to the motherboard for a boot? Or maybe its the driver that needs to be updated? I am really not sure what to do

Also the beeps indicated that the card of RAM I extracted had died. It also gives those 5 beeps when a component attached to the motherboard dies or is not connected properly. When I unplugged my graphics card entirely it gave me the same beeps until I plugged it back in. So the beeps are a separate but resolved issue (I believe at least)