I ran into this issue while running Natty on VMware. More specifically:
I log in to Ubuntu Classic mode.
The theme is Ambiance as expected, but all of the icons are the unity theme 
icons instead of Ubuntu-Mono. Nautilus also has the Ubuntu One icon embedded.
About 20 seconds later, the theme reverts to the ugly theme.
Restarting gnome-settings-daemon and nautilus fixes the to the proper Classic 
mode theme.

I've tried the workaround in #68 and it still resulted in:
"** (gnome-settings-daemon:1941): WARNING **: You can only run one xsettings 
manager at a time; exiting"
regardless of the time i set, until i set it too far and 
gnome-settings-daemon.desktop timed out instead.

I had set the virtual machine as a single CPU single core machine. Once
I changed the machine to dual core, I logged into Ubuntu Classic with
the expected theme and icons without the theme reverting.

I hope that helps.

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https://bugs.launchpad.net/bugs/649809

Title:
  the session settings manager can try starting before the login screen
  one exits

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