SOLVED
The problem: Using compiz as the window manager causes gnome session to timeout 
after 10 seconds slowing boot time.
Solution: This is a quick hack to /usr/lib/gnome.wm.
Add the following line to gnome.wm

SMID=$DESKTOP_AUTOSTART_ID

above the following code which appears near the bottom

# Now create options OPT1, OPT2 and OPT3 based on the windowmanager used
OPT1=
OPT2=
OPT3=
OPT4=

Reason:
$DESKTOP_AUTOSTART_ID is the way that gnome session passes the DBus ID that is 
required.
Metacity uses this argument directly (and resets it to ""), Compiz expects it 
passed with the smClientId parameter (--sm-client-id)
gnome.wm is NOT passed SMID as an argument, I would have assumed that it would 
do, however gnome.wm is in a transitional state, hopefully this will be fixed 
in a later release.

Enjoy an 8 second decrease in boot time.

-- 
Delayed Login
https://bugs.launchpad.net/bugs/291467
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