As a quick workaround, you could exit the low graphics mode notification
by selecting 'OK' and then selecting one of the options followed by 'OK'
(or just by pressing ESC). Then, login via the command line then enter:

sudo /etc/init.d/lightdm restart

This will then restart the desktop environment. Not ideal, but it will
suffice for me until a fix is made available. Interestingly, I
completely reinstalled 11.10 and then did the upgrade to 12.04 again and
I saw the low graphics mode problem straight away whereas before this
was not a problem.

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https://bugs.launchpad.net/bugs/912381

Title:
  Error "ubuntu is running in low-graphics mode" directly after
  installation

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