the current version upstart script has
" # Check kernel command-line for inhibitors
for ARG in $(cat /proc/cmdline)
do
case "${ARG}" in
text|-s|s|S|single)
exit 0"
the change has been uploaded in gdm 2.27.90-0ubuntu7 which should fix
the issue
** Changed in: gdm (Ubuntu)
Importance: Undecided => Low
** Changed in: gdm (Ubuntu)
Status: New => Fix Released
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Login Prompt on Live CD Text Mode
https://bugs.launchpad.net/bugs/434769
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