Found a work-around. I have GDM installed as well as lightdm. I typed:

sudo dpkg-reconfigure gdm

to tell the system to use GDM instead of lightdm. Everything now works,
but I still need permanent fix so I can stay 'standard' with lightdm.

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https://bugs.launchpad.net/bugs/875542

Title:
  Can't login as administrator, only as Guest. Once correct password is
  typed using Administrator as user, screen goes black and then returns
  to login.  As Guest I cannot access external drives, etc.  Also cannot
  shutdown.

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