Same problem here on up to date Feisty. 
Uncommenting the following had no effect for me.

auto lo
iface lo inet loopback

However, unchecking 'Enable Software Sound Mixing (ESD)' on the Sounds tab of 
Sound Preferences seems to have solved the problem.
Gnome now starts quickly with no errors.

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gnome-settings-daemon crashes at login
https://bugs.launchpad.net/bugs/61381
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