This bug was fixed in the package lxdm -
0.2.0~svn2307+git20100408-0ubuntu1
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lxdm (0.2.0~svn2307+git20100408-0ubuntu1) lucid; urgency=low
* New upstream snapshot (735dbe5727f)
- Fix PAM support (LP: #550551)
- Fix use of encrypted partition (LP: #554583)
* debian/patches:
I was trying to attach this bug directly to the lubuntu project page.
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Lubuntu when booting computer, log in screen shows 'default' session instead of
last used session
https://bugs.launchpad.net/bugs/561377
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