I think the check is whether an *encrypted* keyring is being used.  If
the keyring already has a NULL password, and is in the clear, then
nothing needs to be displayed.

An alternative to actually changing the key directly would be an
explanation of what needs to be changed, additional words about the
security implications, and then either instructions on how to change, or
a link / button that launches seahorse.   Note, the instructions are
probably required at minimum, as changing the login keyring password
isn't all that intuitive in seahorse.  I also had to launch seahorse
from the command line because I couldn't find a way to launch it from
the UI ( using 9.04 ).  So without a button/link that launches it from
the dialog, perhaps gdm does have to do all the work.

Finally, I'd like to comment that I agree with jp re: disk encryption.
Encrypted home dir was made available in Jaunty ( albeit with some minor
work on the installer's part ) and will available as an option by
default ( at least that's what I've heard ) in Karmic.   This seems to
me like the better approach for keeping important things on disk safe as
opposed to the login keyring approach.

-- 
libpam-keyring broken on autologins
https://bugs.launchpad.net/bugs/137247
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