For some reason the re-install routine described above only worked for a
few days then started hanging again. I noticed that it only hangs with
one particular user, and not another, so there may be a conflict app on
the panel that is causing the trouble. Will investigate further.

Glenn: rather than restarting, you should kill the deskbar process.
Ctrl-Alt-F1 will bring up a console, log in then enter command:
ps -A | grep deskbar
... this will show you the process ID (a number), then enter command:
kill <process ID>
... then Ctrl-Alt-F7 to get back to Gnome desktop

-- 
Panel hangs on login
https://launchpad.net/bugs/46150

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