Likewise. I still need to create a /usr/share/xsessions/xsession.desktop
as below. This is not in the lucid-updates fix yet, and until it does,
this bug isn't really resolved.

[Desktop Entry]
Name=Xsession
Comment=Legacy Xsession
Exec=/etc/X11/Xsession

-- 
The new gdm doesn't give an option to run /etc/X11/Xsession
https://bugs.launchpad.net/bugs/398300
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