hi all.
i've had the same issue (jaunty xubuntu fresh installation with intel video 
card).
it seems like paul's solution:
sudo update-rc.d -f gdm remove
sudo update-rc.d gdm defaults
works perfect.
later after playing with gdm and configuration autologin stopped working again 
and this helped another time.
btw. gdm default settings in rc.d is different than jaunty default settings.

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Jaunty's GDM Autologin doesn't work anymore
https://bugs.launchpad.net/bugs/370541
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