For me the system as standard with one user "crt" (or at least via standard 
updates) has a frozen gdm login screen as described by others. 
Modify /etc/gdm/custom.conf to add the following:
[daemon]
AutomaticLogin=crt
AlwaysLoginCurrentSession=false
AutomaticLoginEnable=true
TimedLoginEnable=false
TimedLogin=crt
TimedLoginDelay=30
DefaultSession=gnome

Restart results in user "crt" being logged in.

Log out user "crt"
Attempt to login in user "crt": gdm login screen asks for password, but mouse 
is frozen and no keyboard input accepted. After about 7 seconds gdm login 
screen redisplayed.

Restart gdm (which progresses through automatic login) to get access to
graphic platform again.

Run gdmsetup to require manual login ("Show the screen for choosing who
will log in") which sets AutomaticLoginEnable=false.

Restart system.

Cannot login due to frozen password dialog.

-- 
pam_unix(gdm:auth): conversation failed
https://bugs.launchpad.net/bugs/516520
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