Thank you for your bug report. Could you run "ls /usr/share/xsessions".
Do you have a kde.desktop there? What binary package is shipping it?
** Changed in: gdm (Ubuntu)
Importance: Undecided => Low
** Changed in: gdm (Ubuntu)
Status: New => Incomplete
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gdm has entry for kde but kde is not fully installed
https://bugs.launchpad.net/bugs/542856
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