I can also confirm this bug, exactly as described. Happens when using
any NVIDIA driver but works again when I change the driver in xorg.conf
manually back to 'nv'. Log file attached.
** Attachment added: .xsession-errors log file
http://launchpadlibrarian.net/22188541/xsession-errors
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[jaunty] Cannot Start Gnome Desktop
https://bugs.launchpad.net/bugs/326749
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