The looping behavior was actually caused by upstart/gdm, but we've
introduced an upstart script that makes it stop after 3 tries and dump
the user into the X failsafe mode. So afaik this should now all be
resolved. Plz reopen with additional detail if any remaining work is
needed.
** Changed in: xorg (Ubuntu)
Status: Confirmed => Fix Released
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no fallback for failing xorg
https://bugs.launchpad.net/bugs/489491
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