I notice what appears to be the same thing in Precise.  In case it
helps, my specifics:

- everything is visually fine from boot to presentation of login screen
- after I type my password, before the gray intermediate screen comes up 
(between login and session) in Unity 2d, my screen flickers briefly and then 
for about 5 seconds shows multiple corrupted password dialogue boxes scattered 
around the top of the screen
- my hardware is old ATI IGP stuff
- one other thing that I notice that is different than 11.10, and that is my 
session background also appears as my login background; that is, I chose the 
"watch gears" background for my session, and afterwards, whenever I see a login 
screen, it also has "watch gears"

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You received this bug notification because you are a member of Desktop
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https://bugs.launchpad.net/bugs/933322

Title:
  LightDM graphic corruption with ati and nvidia

Status in Light Display Manager:
  New
Status in OEM Priority Project:
  New
Status in OEM Priority Project precise series:
  New
Status in Unity Greeter:
  New
Status in “lightdm” package in Ubuntu:
  Triaged
Status in “xserver-xorg-video-ati” package in Ubuntu:
  Confirmed

Bug description:
  LightDM shows graphic corruption after entering password and pressing
  Enter. No matter if I choose Gnome Shell or Unity as a session, the
  corruption is still there. No other graphic corruption is visible on
  desktop(s).

  GPU: ATI Radeon 9600 AS (AGP)
  GPU driver: xserver-xorg-video-ati Version: 
1:6.14.99~git20111219.aacbd629-0ubuntu2
  Display: L1715S

  Will attach photos later today.

  ProblemType: Bug
  DistroRelease: Ubuntu 12.04
  Package: lightdm 1.1.2-0ubuntu3
  ProcVersionSignature: Ubuntu 3.2.0-16.25-generic-pae 3.2.6
  Uname: Linux 3.2.0-16-generic-pae i686
  ApportVersion: 1.91-0ubuntu1
  Architecture: i386
  Date: Thu Feb 16 10:34:04 2012
  InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Alpha i386 
(20120201.1)
  SourcePackage: lightdm
  UpgradeStatus: No upgrade log present (probably fresh install)

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