I'm also affected by this.
I have a Dell Inspiron 1525, with an Intel Graphics card (quite generic... 
Can't remember the model), and it happened just like itsjustarumour said.
I tried to enter via Failsafe-GNOME, but it froze (I guess it was just a 
coincidence...)
Anyway, I booted via recovery mode, and located the config files for reflection 
using "locate reflex"
Then I found 2 files: 
/usr/share/compiz/reflex.xml
/usr/share/gconf/schemas/compiz-reflex.schemas
I changed them both to other names and reboot to normal GNOME... It worked. 
Then I disabled Reflection with the manager.

-- 
[i965] reflection plugin freezes systems with Intel GM965
https://bugs.launchpad.net/bugs/298532
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which is subscribed to xserver-xorg-video-intel in ubuntu.

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