Yes but only for the user itself. The permissions for the rest of the world are 
no read,no write, no execute!
Someone can only change the permissions for home and .dmrc file alone.
sudo chmod 700 /home/username
sudo chmod username /home/username/.dmrc
that fixed the problem for me!
thank you garvin.

-- 
When I login, I receive and error that the permissions are wrong for the file 
.dmrc
https://bugs.launchpad.net/bugs/209464
You received this bug notification because you are a member of Ubuntu
Desktop Bugs, which is a bug assignee.

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