Same for me! I usually update as soon as there is a new update.
Yesterday (28 nov, 2007) there were some 5 updates which I installed.
Right after that the problems with user switching began.

The error shows itself in two ways for me:
1) sometimes I just get a black screen after trying to switch user. In this 
situation I have to power off.
2) sometimes I get to enter the password for the new user and here it hangs 
forever. But I can get out of it by clicking left lower corner, cancel or 
something.

I am also using Ubuntu 7.10 with all updates up to yesterday.

-- 
Switch User fails after updating with unsupported updates enabled
https://bugs.launchpad.net/bugs/172698
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Bugs, which is the bug contact for Ubuntu.

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