Got a response from Sun Ray Eng'g, it looks like this is captured in CR 6750408, 'cannot login using default shell csh'. The work-around is to modify "dbus-launch" line /ust/dt/config/Xsession.jds as follows...
BEFORE: eval `dbus-launch --exit-with-session --auto-syntax` AFTER: eval `dbus-launch --exit-with-session --sh-syntax` This work around has been verified. -- This message posted from opensolaris.org
