> Is it safe to say this has been fixed, whatever the cause?

No, it has not been fixed.  I just downloaded ubuntu-8.04-desktop-i386.iso
and booted it as a live CD, and it's still looping.

If anything, the problem has gotten worse: with alpha 4, the desktop background
and menu bars appeared briefly before I got thrown back to the login countdown,
but now they don't: I just get the countdown, a few seconds of black screen,
countdown, black screen, countdown, etc.

-- 
Hardy alpha 4 live CD loops between login and desktop
https://bugs.launchpad.net/bugs/188660
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