Thanks. The Xorg.0.log actually isn't that much use as you're using
FreeNX, so it doesn't have the information I was looking for (my fault).
Anyway, I did some reading online, and FreeNX doesn't support
XInputExtension AFAICT, which is what triggers your issue here.
** Changed in: gnome-settings-daemon (Ubuntu)
Status: Incomplete => Triaged
** Changed in: gnome-settings-daemon (Ubuntu)
Assignee: (unassigned) => Ubuntu Desktop Bugs (desktop-bugs)
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The program 'gnome-settings-daemon' received an X Window System error. During
on a FreeNX server suring a session.
https://bugs.launchpad.net/bugs/409621
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