Thanks for that, Jeremy. It was the gnome classic login session.
I've updated with the gnome-session package.  Is that right?

** Package changed: gnome-shell (Ubuntu) => gnome-session (Ubuntu)

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https://bugs.launchpad.net/bugs/857933

Title:
  Gnome in fallback mode in Oneiric with proprietary AMD driver and
  Radeon 5870

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