I am starting to suspect that this is the bug I too have been
experiencing on a laptop I set up for a friend.  Unfortunately I don't
think I ever let the computer sit for long enough (10s according to #2
here) before trying something else.

I changed from GDM to XDM, and while I still didn't get xsplash
(sweeping progression bar), I got to a working login screen at the
expected time.  Boot from the live-CD worked as intended, with the
proper splash screens etc, but of course with no login-screen (since it
went directly to a working desktop).

I posted my experience here:
http://ubuntuforums.org/showthread.php?t=1293255&highlight=thefineprint&page=3

-- 
Karmic: Boot up problem, after usplash logo  is a blank screen for about 14 
seconds before xsplash appears briefly.
https://bugs.launchpad.net/bugs/453337
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