TL;DR: 10.36 works around the latest NVidia driver - let X-Plane auto-update and everything will just work the way it should.
X-Plane 10.36 is out now - it's a quick patch of X-Plane 10.35 that works around what I believe to be a driver bug* in the new NVidia GeForce 352.86 drivers.
10.36 has been posted using our regular update process and has been pushed to Steam, so if you're running 10.35, you'll be prompted to update. The update is very small - about 10-12 MB of download.
With this patch, you can now run the latest NVidia drivers. I have no idea if those drivers are good (I have anecdotal reports that they're both better and worse than the last drivers, but these kinds of reports often have a large 'noise' factor**).
We patched X-Plane because we can cut an X-Plane patch faster than NVidia can re-issue the driver, and the driver issue was causing X-Plane to not start at all for any users, which was turning into a customer support mess. Past NVidia-specific patches have been to fix bugs in X-Plane, but in this case, we're simply avoiding a pot-hole. I hope that NVidia will get their driver fixed relatively soon so that people installing from DVDs with older versions of the sim won't be stuck.
Update: NVidia fixed this bug in the new 353.06 drivers!
[OpenGL, Windows 8.1 -x86/x64]: GLSL shader compile error. 
* The bug is that #defines defined within a function body don't macro-substitute, but #defines outside a function body too. The work-around is to move some #defines out of function bodies. If anyone can find a reason why #defines can't be in function bodies, please shout at me, but it's a pre-processor.
** We've had reports of huge fps improvements and losses on beta updates where we've made only cosmetic changes to the sim.