it works for me any more too -- why ever it did once...
see also:
https://bugs.launchpad.net/ubuntu/lucid/+source/upstart/+bug/459639
perhaps also something like this will help to get the sleep as short or
long as really needed: ?
export XORGCONFIG
until ( lsmod | grep '^nvidia ' >/dev/null ); do sleep 1; done
exec gdm-binary $CONFIG_FILE
--
kdm starts before nvidia driver is fully loaded
https://bugs.launchpad.net/bugs/585930
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