>From what I've understood you've done the following :
You are logged in as xy, then choose the "Switch user" option of the session 
logout box which point you to a new gdm greeter.
At this point you entered a login, pressed enter and choose the "Remote login 
Via XDMCP" option.
The X server reloaded and you saw the XDMCP box with a Cancel button, clicking 
on it closed the XDMCP box and instead of reloading gdm and have a clean 
greeter you were redirected back to tty7 which was the xy's session from where 
you started.

So if the above is correct, it's not a real security issue as it'd have
been if you had been able to login into someone else session which
wasn't already opened, the problem is more on why didn't gnome-
screesaver started on that session and locked the screen as it should (I
wasn't able to reproduce this bug as after clicking on Cancel I was
brought back on my Gnome-Screensaver asking for my password).

Is the above correct ?
If yes can you create a blank account and try again, to see if that's a 
gnome-screensaver configuration issue ?

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On server login user can hack
https://bugs.launchpad.net/bugs/124269
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