I can confirm this behavior. I just upgraded my system from jaunty to
karmic, and I found that gnome-settings-daemon would not start when
running a free-nx session. However, g-s-d started properly when I
started a normal gnome session (no free-nx). Then I disabled the xrandr
plug-in, and g-s-d was able to start in a free-nx session.

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The program 'gnome-settings-daemon' received an X Window System error. During 
on a FreeNX server suring a session. The crash does not happen when xrandr 
plugin is disabled.
https://bugs.launchpad.net/bugs/454487
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