In my case the repro was simply:

1) Install Ubuntu 7.10 from CD.
2) Log in to desktop GUI and apply available updates from notification icon.
3) Reboot and never get an interactive desktop upon GDM login while nautilus 
log thrashes (text console logins work fine).

My is/was slightly different because it was triggered simply by logging
in, not logging out and back in or by switching users. However, the
symptoms were the same.

I installed Debian Etch because I need a stable desktop to get work
done. I was genuinely surprised this wasn't getting attention in a
supported *release* version, thanks.

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[Gutsy] high processor activity after logging out and then logging in again
https://bugs.launchpad.net/bugs/150471
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