Same here, but I got used to it by booting into recovery mode and then I choose 
to resume to boot normal.
It always boots successfully. I am used to this workaround since 11.10...
But this should just be a workaround!
Next time I will try sudo /etc/init.d/lightdm restart.

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to lightdm in Ubuntu.
https://bugs.launchpad.net/bugs/993579

Title:
  lightdm improperly report low graphics card

Status in “lightdm” package in Ubuntu:
  Confirmed

Bug description:
  Today, after reinstall my nvidia drivers, I started to get an error
  after X starts, before lightdm login screen, saying thar my computer
  was in low graphics mode and asking me what to do. Whatever option I
  choose, the screen backs to the terminal.

  I thought for hours that I had a X driver problems, and tried a lot of
  drivers, nouveau, nvidia-current, nvidia-current-updates... No
  success. After search a little bit on the internet, I found this site,
  http://ubuntuforums.org/showthread.php?t=1970586 saying that after
  change to gdm the problem were gone. So I did, everything is working
  fine, with gdm + unity-2d-shell.

  I found other users complaining about similar problems:
  http://askubuntu.com/questions/128375/low-graphic-mode-after-upgrade-to-12-04
  
http://askubuntu.com/questions/125453/your-system-is-running-in-low-graphics-mode-with-an-ati-radeon-3200-graphics-car
  
http://askubuntu.com/questions/129776/how-do-i-fix-running-in-low-graphics-mode-ubuntu-12-04
  
http://askubuntu.com/questions/127606/your-system-is-running-in-low-graphics-mode-on-an-acer-aspire-5552

  Please ask if you need more info.

  ProblemType: Bug
  DistroRelease: Ubuntu 12.04
  Package: lightdm 1.2.1-0ubuntu1
  ProcVersionSignature: Ubuntu 3.2.0-24.37-generic 3.2.14
  Uname: Linux 3.2.0-24-generic x86_64
  ApportVersion: 2.0.1-0ubuntu7
  Architecture: amd64
  Date: Tue May  1 14:48:02 2012
  InstallationMedia: Ubuntu 10.04 LTS "Lucid Lynx" - Release amd64 (20100429)
  ProcEnviron:
   TERM=xterm
   PATH=(custom, user)
   LANG=en_US.UTF-8
   SHELL=/bin/bash
  SourcePackage: lightdm
  UpgradeStatus: No upgrade log present (probably fresh install)

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