I did just experience this again with the 20110921.1-i386 Lubuntu image
on my old VIA hardware, but I'd had 4 or 5 consecutive boots perform
perfectly fine, so the behavior is inconsistent now.

With 20110920-i386 the behavior was quite consistent, that is each boot
would end at TTY.

I am thinking we should mention this in the release notes for Lubuntu
Beta 2 because the work around, typing "sudo service lxdm start" does
work fine.

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https://bugs.launchpad.net/bugs/854837

Title:
  Lubuntu live image boots to TTY

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