Having the same problem with Lucid Beta 1 using nvidia v96 driver.

The only way I can start x and boot to gnome desktop is to bypass gdm
altogether.

Clearly it has sometjhing to do with the way gdm interacts with said
nvidia graphics.

I have been testing Lucid since Alpha 3 and this only started happening
after updates on April 1st.

Incidentally, I have another box using the same graphics card but no
proprietory drivers installed. Using the default Nouveau driver, I have
no problems with gdm login.

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Mouse and keyboard stop working after selecting user
https://bugs.launchpad.net/bugs/553200
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