I have similar issue with Intel GM965 integrated graphics. Compositing is disabled after login. It is possible to activate compositing in System Settings / Desktop Effects. After logout I've got black screen.
>From my Xorg.0.log:
[ 20.383] (II) VESA: driver for VESA chipsets: vesa
[ 20.383] (II) FBDEV: driver for framebuffer: fbdev
[ 20.383] (++) using VT number 8
[ 40.249]
Fatal server error:
[ 40.249] xf86OpenConsole: VT_WAITACTIVE failed: Interrupted system call
[ 40.249]
[ 40.249]
Please consult the The X.Org Foundation support
at http://wiki.x.org
for help.
[ 40.249] Please also check the log file at "/var/log/Xorg.0.log" for
additional information.
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Kwin compositing problem on maverick
https://bugs.launchpad.net/bugs/661910
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