I had similar problems (100% cpu load, no console switching possible)
after kdm start had been ported to upstart. I solved the problem by
modifying the upstart configuration file for kdm:
start on (filesystem
++ and stopped udev-finish
and started hal)
This ensures that the virtual console devices are set up properly before
the X server starts.
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[karmic] Xorg 100% CPU utilization -- only after first login
https://bugs.launchpad.net/bugs/439138
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