So, basically, the only remaining problem is that LXDM does not automatically
start, right?
The problem may be in GRUB's configuration. Take a look at the
GRUB_CMDLINE_LINUX_DEFAULT variable in /etc/default/grub. If the keyword
"text" is present then remove it (you will need administrator's privileges to
edit this file) and execute:
$ sudo update-grub
A subsequent reboot will tell if your problem is solved.
If the variable in /etc/default/grub was OK, then try to add LXDM as a script
to start at init time:
$ sudo update-rc.d lxdm defaults
If that still does not solve your problem, we could look at
/etc/init/lxdm.conf and see if LXDM is supposed to start at runlevel 2 (it
should be).