I had probably the same problem with an ATI 9100 (r200) using
xserver-xorg-video-ati/xserver-xorg-video-radeon driver.
I noticed that 3d acceleration was working ("glxinfo|grep direct" showed
"direct rendering: Yes" and glxgears worked fine), anyway seems like "lightdm"
is not able to check it correctly.
Despite that, gdm seems to not have the same problem: doing "sudo
dpkg-reconfigure gdm" and selecting "gdm" as default display manager solved my
problem, though it is actually just a workaround.
Not sure if I'm completely right, but it seems to be at least related with
lightdm, too.
** Also affects: lightdm (Ubuntu)
Importance: Undecided
Status: New
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which is subscribed to xserver-xorg-video-ati in Ubuntu.
https://bugs.launchpad.net/bugs/975414
Title:
lightdm failed to run
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