This bug affects me too. I'm using Lucid Beta with all last updates on
an Nvidia GeForce 4 MX420-card using the proprietary "nvidia-96" driver.
After selecting a user, GDM hangs for a few seconds, then restarts with
the user-selection menu. Of course the same problem occurs.

It is a problem in the combination of GDM and the "nvidia-96" driver.
When I do not specify a driver in xorg.conf I can perfectly login. But
with those drivers there's no 3D-accelleration...

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GDM freeze on display of password box
https://bugs.launchpad.net/bugs/555984
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