Same problem here:
lightdm hangs immediately after entering the password and displays a black 
screen.
After killing lightdm I can see that the home directory was not created.
Instead this works well when using GDM or a console login.
The bug can be reproduced in this way for a local user: just delete or move its 
home directory, add the line below to /etc/pam.d/common-session and try to 
login with lightdm.

session required pam_mkhomedir.so umask=0022 skel=/etc/skel

The bug affects precise (lightdm 1.1.9-0ubuntu1), but not oneiric
(lightdm 1.0.6-0ubuntu1.6).

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https://bugs.launchpad.net/bugs/956848

Title:
  pam_mkhomedir.so fails to create homedir in precise

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