When I upgraded from Feisty to Gutsy two days ago, I had the same
problem. Looking at .xsession-errors I found the following error:

1198440598.912730 Session manager: gsm-remote-desktop.c:107: remote desktop 
server died, restarting
1198440598.916107 Session manager: gsm-remote-desktop.c:107: remote desktop 
server died, restarting
1198440608.837906 Session manager: gsm-remote-desktop.c:130: activation of 
OAFIID:GNOME_RemoteDesktopServer failed: System exception: 
IDL:omg.org/CORBA/COMM_FAILURE:1.0

This led me to think it was something related with remote desktop. So I
fixed the problem by disabling it (the server  name is "vino-server").
To do so, run from a terminal "vino-preferences" and disable remote
desktop. Now reboot and it should work. This seems to fix bug #172444
too. I hope this helps.

P.S.: I think there might be a bug in vino or in the gnome-session
package (since gsm-remote-desktop.c belongs to that package), so this is
just a quick fix.

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gdm hangs after login in gutsy
https://bugs.launchpad.net/bugs/157622
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Desktop Bugs, which is a bug contact for gdm in ubuntu.

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