I am having the same problem.  This is a headless box that we use XDMCP to get 
a graphical login (via Cygwin and other X clients.)  Login started giving us a 
blank screen after an update that came in over the weekend.  X is started, but 
gdm won't start.
$ sudo startx


Fatal server error:
Server is already active for display 0
        If this server is no longer running, remove /tmp/.X0-lock
        and start again.


Please consult the The X.Org Foundation support 
         at http://wiki.x.org
 for help. 

 ddxSigGiveUp: Closing log
bauc...@suncomdbbackup:~$ sudo start gdm
gdm start/running, process 2077
bauc...@suncomdbbackup:~$ sudo restart gdm
restart: Unknown instance: 
bauc...@suncomdbbackup:~$ sudo /etc/init.d/gdm restart
Rather than invoking init scripts through /etc/init.d, use the service(8)
utility, e.g. service gdm restart

Since the script you are attempting to invoke has been converted to an
Upstart job, you may also use the restart(8) utility, e.g. restart gdm
gdm start/running, process 2128
$ sudo gdm start
gdm-binary[2548]: WARNING: Unable to find users: no seat-id found
gdm-binary[2548]: WARNING: GdmDisplay: display lasted 0.056723 seconds
gdm-binary[2548]: WARNING: GdmDisplay: display lasted 1.094790 seconds
gdm-binary[2548]: WARNING: GdmDisplay: display lasted 1.591579 seconds
gdm-binary[2548]: WARNING: GdmDisplay: display lasted 2.993212 seconds
gdm-binary[2548]: WARNING: GdmDisplay: display lasted 1.554155 seconds
gdm-binary[2548]: WARNING: GdmDisplay: display lasted 1.586478 seconds
gdm-binary[2548]: WARNING: GdmLocalDisplayFactory: maximum number of X display 
failures reached: check X server log for errors

-- 
GDM wont load login
https://bugs.launchpad.net/bugs/533298
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