I was affected by this issue as well.  That is, I upgraded from natty to
oneiric release and upon reboot no X server started.  The last message
on the console was "Checking battery state", but I expect that's just
the last init script that ran and unrelated to this issue.  The problem
was that no DM was starting even though I could start both lightdm & gdm
manually.

After reading the comments in this bug, I ran "dpkg-reconfigure lightdm"
and chose lightdm as my DM.  This resolved my issue with no other steps
required.  Fwiw, I was not prompted to choose a DM by the release
upgrade process.

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https://bugs.launchpad.net/bugs/804171

Title:
  After latest upgrade of oneiric, Lightdm or Xserver not working

Status in One Hundred Paper Cuts:
  New
Status in “lightdm” package in Ubuntu:
  Incomplete

Bug description:
  It seems that, after last upgrade of Oneiric made one hour ago, either 
Xserver or lightdm doesn't work anymore.
  Before the login screen Ubuntu prints out some state messages. The last one 
is "Checking battery state" (mine it is not a portable PC)
  I have to press Alt+F1, I logged in and wrote "startx". Gnome3 says "Failed 
to load session "gnome-fallback"" (my pc doesn't support neither Gnome-shell 
nor Unity3D) and pressing the only button Log Out terminal compares again.
  Is it possible to rollback last upgrade of Lightdm?

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