I can confirm this bug.
Running Hardy, gnome-settings-daemon fails to start if xserver-xgl is
installed.
I attach a screenshot. As a result everything looks ugly, and
configuration (e.g. autostart) is not applied. I also experience
keyboard problems (using Hungarian layout, the modifier AltGr (right
alt) is ignored, can not type a pipe as a result).
** Changed in: ubuntu
Status: New => Confirmed
** Changed in: gnome-settings-daemon (Ubuntu)
Sourcepackagename: None => gnome-settings-daemon
** Attachment added: "Screenshot-1.png"
http://launchpadlibrarian.net/12622006/Screenshot-1.png
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Gnome fails to load settings with xserver-xgl installed
https://bugs.launchpad.net/bugs/198046
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