I can repeat this bug as well.
sudo apt-get install xserver-xgl
sudo vi /etc/gdm/gdm.conf-custom
and add the lines as described.
sudo /etc/init.d/gdm restart
ALT+F2
env DISPLAY=:0.0 xterm
pops up an xterm over the login screen. Xhost reports 'no access
control'. This doesn't work with the default X server though, not sure
why the behaviour is different.
** Changed in: xserver-xgl (Ubuntu)
Status: Unconfirmed => Confirmed
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xserver or gdm sets xhost + ; no security
https://launchpad.net/bugs/73110
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