about 3 weeks ago a had the same problem after updating the system and reboot. 
That time i did a full reinstall.
Nu this morning the same thing happens again! this time I had no login (gdm) 
screen. so i rebooted to save mode, fix the X server to default. and restarted 
X. 
That did give me back GDM and I was back on the desktop. But the same error 
appears now a loop of nautilus windows inside the taskbar and nautilus will not 
open and no desktop icons. the cursor was always busy on the desktop. 

This error is the same as the first time only not the GDM part the first time.
So this is not a configuration fault I was thinking...

but i solved the problem (for now) I downloaded the ATI drivers from the 
website and opened a terminal.
I cd to the directory (my case cd /ralph/Bureaublad) and did sh ati<tab> and 
enter.
this installs the new ati driver again, and half way the setup nautilus loop 
was gone and after a reboot everything is back to normal again.

sorry for maybe some bad English.

maybe my story will help someone here to solve the problem, i think this
is the same bug (but for me noting to do with Ubuntu one, at least i
think i is not)

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https://bugs.launchpad.net/bugs/674876

Title:
  Nautilus keeps opening when ubuntu one plugin is installed

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