I can confirm this issue using Xubuntu Natty Narwhal. It is not a unity
or compiz bug, but something in GDM. This started for Xubuntu 2010-12-08
after running updates. GDM will not log any user in, but instead
immediately restarts.

** Changed in: gdm (Ubuntu)
   Importance: Low => High

** Changed in: gdm (Ubuntu)
       Status: Incomplete => Confirmed

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https://bugs.launchpad.net/bugs/654578

Title:
  Returned to gdm screen after logging in

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