I notice what appears to be the same thing in Precise.  In case it
helps, my specifics:

- everything is visually fine from boot to presentation of login screen
- after I type my password, before the gray intermediate screen comes up 
(between login and session) in Unity 2d, my screen flickers briefly and then 
for about 5 seconds shows multiple corrupted password dialogue boxes scattered 
around the top of the screen
- my hardware is old ATI IGP stuff
- one other thing that I notice that is different than 11.10, and that is my 
session background also appears as my login background; that is, I chose the 
"watch gears" background for my session, and afterwards, whenever I see a login 
screen, it also has "watch gears"

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-ati in Ubuntu.
https://bugs.launchpad.net/bugs/933322

Title:
  LightDM graphic corruption with ati and nvidia

To manage notifications about this bug go to:
https://bugs.launchpad.net/lightdm/+bug/933322/+subscriptions

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