This issue is caused by Nautilus afacit.

I've disabled every autostart program and the issue still occurred.
Then, removing nautilus from gconf (for gnome-session) stopped this
issue from occuring.

I believe it is because nautilus exits after starting up as it doesn't
need to draw the desktop so quits without completing it's startup
notification.

** Also affects: nautilus
   Importance: Undecided
       Status: New

** Changed in: netbook-remix-launcher
       Status: New => Invalid

** Changed in: netbook-launcher (Ubuntu)
       Status: New => Invalid

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Jaunty UNR - Wait cursor stays on for several minutes
https://bugs.launchpad.net/bugs/324985
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