I can confirm this bug also.
I have upgrade to Kubuntu Gutsy, and, with xserver-xgl, after logging in, I 
only get the screen with the login-background (so not really blank), There is 
some harddisk activity for a few seconds, but then nothing more. If I sudo 
apt-get remove xserver-xgl, the problem is gone, I can login normally. Also, I 
installed the latest ATI drivers with Envy, and everything else is running ok...

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Can't log in after upgrading
https://bugs.launchpad.net/bugs/136529
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