In my case the source of the problem was quite strange. 
I have installed a piece of software that recommended sourcing its 
configuration script in /etc/profile. Unfortunately I have typed the path 
incorrectly without noticing it.
Next attempt to login after this modification hung on 'Logging in...' message, 
as described in earlier posts.
After logging in via console I have noticed bash complaining about incorrect 
path, so I have corrected typing mistake in /etc/profile. 
Next login was OK.
So it looks like in my case it was timing issue due to error in profile.

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https://bugs.launchpad.net/bugs/986967

Title:
  unable to log in - hangs on 'logging in' msg

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