Mike, I do have a NVidia video card, but please note that I did also try 
booting without restricted NVidia drivers, using only the community nv-driver 
and the problem did not go away. So I do not think it is a dkms issue.
But reinstalling all kernel packages did fix it for me. Also the warnings about 
having serious kernel issue disappeared.
Obviously my problem had something to do with the kernel.
Have you tested the new 2.6.31.11 kernel?

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gdm sometimes fails to start after new upstart merge
https://bugs.launchpad.net/bugs/434361
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