Thanks for the tip on what to attach and how to get it. I take it that you 
meant to say 
sudo chown OLDUSER /home/OLDUSER/xsession-errors
(note the "s" after the "x" in xsession). 

I am attaching the file as requested.

It looks like a display/graphics card/compiz issue. Oddly, this does not
come up for the existing users, and I would not use compiz anyway as it
does not work with the open source ATI graphics drivers.  (No, system
would not let me add closed-source drivers even if I try -- a separate
issue?)

Please let me know if I can help in any other way.

** Attachment added: "xsession-errors from new user, as requested"
   http://launchpadlibrarian.net/32131773/xsession-errors

-- 
New desktop users get just white screen with mouse pointer moving
https://bugs.launchpad.net/bugs/432743
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