Same problem here with fully updated Lucid Beta1. I have been manually
bypassing gdm for a week now. To top it off, if I enable the nouveau
driver I can't get past the boot splash at all (<a
href="https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-
nouveau/+bug/544088" title="Ubuntu 10.4 freezes on x-server start with
Geforce 3 TI200">bug #544088</a>), but that's another story. So, this
bug is the lesser of two evils, but still annoying.

See <a href="http://ubuntuforums.org/showthread.php?t=1436466";
title="GDM crashes with NVIDIA 96 driver activated">this thread</a> for
even more affected users.

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Mouse and keyboard stop working after selecting user
https://bugs.launchpad.net/bugs/553200
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