This problem of 100% CPU usage from Xorg occurs while I'm running Ubuntu 9.10 
beta on a live session from a USB pen in a laptop without any encryption.
Does karmic come with cryptsetup starting by default?
Sorry in advance for the noob question.

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[karmic] Xorg 100% CPU utilization -- only after first login
https://bugs.launchpad.net/bugs/439138
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