FYI, I still have this problem when using KDM. When I configure GDM it
works fine. Even the updates to Karmic that should affect exactly such a
case when both KDM and GDM are installed did not solve the problem for
me.

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X-Server fails to start at boot time, debconf complains about unavailable TERM
https://bugs.launchpad.net/bugs/483645
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which is subscribed to xserver-xorg-video-intel in ubuntu.

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