In reply to comment #1: the bug is not invalid, and this is not a local
issue.  See bug #888355 for detailed steps to reproduce.  The
combination of these two preferences makes login impossible.  The user
administration tool should make such combinations impossible (bug
#888355), but if they do occur somehow, gdm should ask for the password
so that it can decrypt the home directory.  At the very least, it should
raise a clear error message.  Currently it gives very cryptic errors and
login hangs (on Ubuntu 11.04), or it gives no error message at all and
just returns you to the login screen (on Ubuntu 11.10).  There's
definitely room for improvement here.

** Changed in: gdm (Ubuntu)
       Status: Invalid => Confirmed

** Changed in: gdm (Ubuntu)
       Status: Confirmed => New

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https://bugs.launchpad.net/bugs/577563

Title:
  Automatic login fails and computer hangs (Lucid)

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