I just noticed this on my Intrepid box after my nvidia module was
crashing X (after some updates/changes)...

This really should be fixed... "Status Undecided" for 3 months is poor form 
Ubuntu. 
If a normal user can find a way to get X to crash when starting, you can gain a 
root shell in seconds.

While physical access is always a difficult problem to defend against...
you could fix this issue by simply adding a proper password prompt. This
is essentially single-user-mode for X, which on the console asks for
your root password for maintenance... Why should this X11 equivalent be
any different?

/etc/gdm/failsafeXinit is also executable by other... why?

-- 
[jaunty] low graphics lets you get root shell with no authentication
https://bugs.launchpad.net/bugs/310040
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