same issue here, how ever after about the third reboot, I do get a message pop 
up about "running in low graphics mode" and click on "ok" (i think) another 
screen comes up with a couple of different selections
-run in low graphics mode this one time
-start troubleshooting...
and some others.
upon selecting  run in low graphics mode
the system goes to a terminal login screen.
after logging in, I type "startx" and all things are normal.
Dell Latitude CPX-j with ATI Rage Mobility graphics.
if you need a log to review, please let me know which one.  I do have a 
Xorg.O.log but it is something like 30k.

here is part of it relating to the graphics driver.

II) LoadModule: "ati"
(II) Loading /usr/lib/xorg/modules/drivers//ati_drv.so
(II) Module ati: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 6.12.99
        Module class: X.Org Video Driver
        ABI class: X.Org Video Driver, version 5.0
(II) LoadModule: "mach64"
(II) Loading /usr/lib/xorg/modules/drivers//mach64_drv.so
(II) Module mach64: vendor="X.Org Foundation"
        compiled for 1.6.3, module version = 6.8.2
        Module class: X.Org Video Driver
        ABI class: X.Org Video Driver, version 5.0
(II) LoadModule: "vesa"
(II) Loading /usr/lib/xorg/modules/drivers//vesa_drv.so
(II) Module vesa: vendor="X.Org Foundation"
        compiled for 1.6.3, module version = 2.2.1
        Module class: X.Org Video Driver
        ABI class: X.Org Video Driver, version 5.0
(II) LoadModule: "fbdev"
(II) Loading /usr/lib/xorg/modules/drivers//fbdev_drv.so
(II) Module fbdev: vendor="X.Org Foundation"
        compiled for 1.6.0, module version = 0.4.0
        ABI class: X.Org Video Driver, version 5.0
(II) MACH64: Driver for ATI Mach64 chipsets
(II) VESA: driver for VESA chipsets: vesa
(II) FBDEV: driver for framebuffer: fbdev
(II) Primary Device is: PCI 0...@00:00:0
(WW) Falling back to old probe method for vesa
(WW) Falling back to old probe method for fbdev
(II) Loading sub module "fbdevhw"

-- 
blank screen, no ttys, no mouse on boot after last update
https://bugs.launchpad.net/bugs/480970
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