This bug was fixed in the package unity-greeter - 0.2.8-0ubuntu1.1

---------------
unity-greeter (0.2.8-0ubuntu1.1) precise-proposed; urgency=low

  * debian/patches/recognize-kde-plasma.patch:
    - Recognize the "kde-plasma" session as "kde" so it gets a properly
      branded icon in the greeter.  LP: #986339
  * debian/patches/show-changed-default-badge.patch:
    - When the default session is changed in lightdm.conf, don't still
      show the Ubuntu badge.  LP: #978428
  * debian/patches/fix-hung-logging-in.patch:
    - Sometimes users will get stuck on a "Logging in..." screen.  This
      fixes that by ensuring that we don't wait for a background to fade
      in that never will.  LP: #986967
 -- Michael Terry <mte...@ubuntu.com>   Fri, 20 Apr 2012 14:51:06 -0400

** Changed in: unity-greeter (Ubuntu Precise)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/986967

Title:
  unable to log in - hangs on 'logging in' msg

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