Hmm. just to add if it will help any..

Still happening to me.  My setup:
1) Dual-boot with BIOS HDD primary as SATA 160GB = WinXP and Fresh install of 
Karmic (via LiveCD)
2) Upon first login xorg goes 100% or 101% and eats up my CPU2.
3) Karmic detects my HDDrives based on the cable and not via my BIOS setup, 
which doesn't happen pre-Karmic (if this will help)
4) My 2nd HDD is a PATA 80GB drive
5) GFX Card: nVIDIA 7300LE
6) GFX Driver: 185
7) Processor: Intel Core2Duo

(Temporary) solution that works for me: Relog-in every (re)-boot.

Latest xorg CPU eat-up - today, Oct 13th (with system updated).

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