I had the same problem.
I solved it renaming '/etc/init/failsafe-x.conf' to
'/etc/init/failsafe-x.conf-disable'
('sudo mv /etc/init/failsafe-x.conf /etc/init/failsafe-x.conf-disable')
Apparently there is some issues with the new 'start' scripts which, in
my case surfaced after the upgrade from 9.04 to 9.10.
I don't know which package was the culprit for leaving the failsafe mode
in init because the upgrade had issues with the proprietary nvidia
driver and i had to reconfigure X for the nv driver, so I cannot tell
when this specific issue started.
** Changed in: kdebase-workspace (Ubuntu)
Status: New => Confirmed
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Karmic boot scripts starting kdm twice during bootup
https://bugs.launchpad.net/bugs/485033
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