I also experienced this bug after upgrading to 12.04 from 10.04.

After chaning settings using Ubuntu Tweak, I could not login using
LightDM at all.  Switched back to GDM and was able to login & debug the
issue.

Yes, I had DISALBED the login sound using Ubuntu Tweak.  After re-
enabling the login sound, I switched back to LightDM and was able to
login perfectly.  This appears to have something to do with the login
sound and/or timing upon login.

AGAIN, re-enabling the login sound appears to correct this issue.

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https://bugs.launchpad.net/bugs/986967

Title:
  unable to log in - hangs on 'logging in' msg

Status in Light Display Manager:
  New
Status in “lightdm” package in Ubuntu:
  In Progress
Status in “lightdm” source package in Precise:
  In Progress

Bug description:
  On my laptop I upgraded from 11.10 to 12.04, 3 or 4 weeks ago.

  Recently I had trouble logging in - I'd type in my password but it
  would hang on the 'logging in...' message you get after pressing
  enter.  After rebooting a few times I was able to log in.

  Now, rebooting isn't helping, I'm unable to log in at all.  I stay at
  the 'logging in...' message until I shut down.

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