It also affects me.

A simple workaround is to install the lightdm package from Oneiric:

http://packages.ubuntu.com/oneiric/lightdm

I downloaded it from that page and installed manually using dpkg. It is
seems to work well.

In order to avoid an update of the package to the Precise version you
need to put lightdm on hold:

https://help.ubuntu.com/community/PinningHowto#Introduction_to_Holding_Packages

Note that this is not an ideal solution as you will not receive security
updates for this package. By putting it on hold you are assuming manual
control over it, so it is your responsibility to update it manually when
needed.

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to lightdm in Ubuntu.
https://bugs.launchpad.net/bugs/976124

Title:
  lightdm multiseat: no login possible

Status in “lightdm” package in Ubuntu:
  Confirmed
Status in “lightdm” source package in Precise:
  Confirmed

Bug description:
  I am testing a multiseat setup with precise:

  One XServer is running on intel graphics card, a second one is running
  on a DisplayLink (usb video) device.

  The two greeters are displayed, but without password fields shown so
  it is not possible to login. If auto-login is enabled in lightdm.conf
  multiseat works fine.

  ProblemType: Bug
  DistroRelease: Ubuntu 12.04
  Package: lightdm 1.2.0-0ubuntu1
  ProcVersionSignature: Ubuntu 3.2.0-22.35-generic 3.2.14
  Uname: Linux 3.2.0-22-generic x86_64
  ApportVersion: 2.0-0ubuntu4
  Architecture: amd64
  Date: Sat Apr  7 20:35:52 2012
  InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Beta amd64 (20120328)
  ProcEnviron:
   PATH=(custom, no user)
   LANG=de_DE.UTF-8
   SHELL=/bin/bash
  SourcePackage: lightdm
  UpgradeStatus: No upgrade log present (probably fresh install)

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https://bugs.launchpad.net/ubuntu/+source/lightdm/+bug/976124/+subscriptions

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