i to had this problem. however i can confirm that the above workaround
does the trick. im using ubuntu studio 7.04. ati radeon xpress 200
chipset (desktop) here. as for the people who this isnt working for be
sure to remove the "#" from the beginning of the line. where it says
#AlwaysRestartServer=off should be changed to AlwaysRestartServer=true.
also besure its like that in tall of the following files:

factory-gdm.conf
gdm.conf
gdm.conf-custom
gdm-cdd.conf

not everyone will have to change all 4 files but in my case i had to.

you will have to do (from terminal) sudo gedit /etc/X11/gdm/"filename
here" to change each one though. hope this helps those still having a
problem.

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log out or switch user results in crash
https://bugs.launchpad.net/bugs/107115
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