Same on my dapper installation. I've forwarded the issue upstream:
http://bugzilla.gnome.org/show_bug.cgi?id=338606
** Changed in: gdm (Ubuntu)
Status: Unconfirmed => Confirmed
** Bug watch added: GNOME Bug Tracker #338606
http://bugzilla.gnome.org/show_bug.cgi?id=338606
** Also affects: gdm (upstream) via
http://bugzilla.gnome.org/show_bug.cgi?id=338606
Severity: Unknown
Priority: Unknown
Status: Unknown
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"Failed to start X" screen on tty2
https://launchpad.net/malone/bugs/29236
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