I found the conflict with the eGalax Touch Daemon driver. 
I moved the driver startup from /etc/init.d/eGtouch.sh 
to userspace as I don't need the touchscreen at login. 

The strange thing is I have 17 machines with this configuration and only
one is exhibiting this behaviour with plymouthd

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Touch seeded packages, which is subscribed to lightdm in Ubuntu.
https://bugs.launchpad.net/bugs/1192051

Title:
  plymouthd spinning at 100% CPU after I log in

Status in Light Display Manager:
  Fix Released
Status in lightdm package in Ubuntu:
  Fix Released

Bug description:
  plymouthd spinning at 100% CPU. Probably triggered by use of this PPA:
  https://launchpad.net/~mir-team/+archive/system-compositor-testing
  although that does not change Plymouth.

  ProblemType: Bug
  DistroRelease: Ubuntu 13.10
  Package: plymouth 0.8.8-0ubuntu7
  ProcVersionSignature: Ubuntu 3.9.0-6.13-generic 3.9.6
  Uname: Linux 3.9.0-6-generic x86_64
  ApportVersion: 2.10.2-0ubuntu1
  Architecture: amd64
  Date: Tue Jun 18 15:06:38 2013
  DefaultPlymouth: /lib/plymouth/themes/ubuntu-logo/ubuntu-logo.plymouth
  ExecutablePath: /sbin/plymouthd
  InstallationDate: Installed on 2013-06-11 (6 days ago)
  InstallationMedia: Ubuntu 13.10 "Saucy Salamander" - Alpha amd64 (20130611)
  MachineType: LENOVO 4286CTO
  MarkForUpload: True
  ProcCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.9.0-6-generic 
root=UUID=25c27832-0efa-4fc4-8a14-41af68d008dc ro quiet splash vt.handoff=7
  ProcEnviron:
   TERM=linux
   PATH=(custom, no user)
  ProcFB:
   0 inteldrmfb
   1 VESA VGA
  ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.9.0-6-generic 
root=UUID=25c27832-0efa-4fc4-8a14-41af68d008dc ro quiet splash vt.handoff=7
  SourcePackage: plymouth
  TextPlymouth: /lib/plymouth/themes/ubuntu-text/ubuntu-text.plymouth
  UpgradeStatus: No upgrade log present (probably fresh install)
  dmi.bios.date: 04/11/2013
  dmi.bios.vendor: LENOVO
  dmi.bios.version: 8DET68WW (1.38 )
  dmi.board.asset.tag: Not Available
  dmi.board.name: 4286CTO
  dmi.board.vendor: LENOVO
  dmi.board.version: Not Available
  dmi.chassis.asset.tag: No Asset Information
  dmi.chassis.type: 10
  dmi.chassis.vendor: LENOVO
  dmi.chassis.version: Not Available
  dmi.modalias: 
dmi:bvnLENOVO:bvr8DET68WW(1.38):bd04/11/2013:svnLENOVO:pn4286CTO:pvrThinkPadX220:rvnLENOVO:rn4286CTO:rvrNotAvailable:cvnLENOVO:ct10:cvrNotAvailable:
  dmi.product.name: 4286CTO
  dmi.product.version: ThinkPad X220
  dmi.sys.vendor: LENOVO

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