When I upgraded from Feisty to Gutsy two days ago, I had the same
problem. Looking at .xsession-errors I found the following error:

1198440598.912730 Session manager: gsm-remote-desktop.c:107: remote desktop 
server died, restarting
1198440598.916107 Session manager: gsm-remote-desktop.c:107: remote desktop 
server died, restarting
1198440608.837906 Session manager: gsm-remote-desktop.c:130: activation of 
OAFIID:GNOME_RemoteDesktopServer failed: System exception: 
IDL:omg.org/CORBA/COMM_FAILURE:1.0

This led me to think it was something related with remote desktop. So I
fixed the problem by disabling it (the server name is "vino-server"). To
do so, run from a terminal "vino-preferences" and disable remote
desktop. Now reboot and it should work. This seems to fix bug #157622
too. I hope this helps.

P.S.: I think there might be a bug in vino or in the gnome-session
package (since gsm-remote-desktop.c belongs to that package), so this is
just a quick fix.

-- 
[Gutsy] Logout a session causes X-Window changes from VT7 to VT9
https://bugs.launchpad.net/bugs/172444
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