I can't confirm that it is still a problem in Breezy, as I have not
upgraded that machine yet.  The problem is that on first boot the login
screen (GDM) will span both monitors, stretching out the background
image.  When I log in, it will still behave as if the displays are a
single monitor (no longer skewed though).  The panel is centered between
the two monitors, and windows do not obey xinerama placement rules.
When I log out, GDM appears as it should, one monitor blank and the
other with the login screen.

The interesting thing is that I do not have to log in/out of gnome to
get normal functionality back.  I can simply log in to fail safe xterm,
log out, and everything works as expected.

-- 
Xinerama doesn't work until second login
https://launchpad.net/bugs/16666

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