I am also affected by this issue

Running 12.04 full updated.

Same scenario as above

Logged in as account 1 - autologin enabled
Switch to Account 2 
- sometimes make it, sometimes get the black screen

Only resolution is CTRL+ALT+DEL (complete restart) or CTRL + ALT+F7 to
go back to Account 1.

This problem has manifest itself in the last 24 hours, of which only three 
changes have occurred.
- Update of new h/w - was working after new CPU/Mobo/Ram installation
- Update of new VM's using Virtual Box - again was working
- Install of Synergy and configured between Ubuntu and Mac.
  - switching off Synergy has not resolved the issue.


The first time it happened I wasn't aware of CTRL+ALT+F7 so done a reboot. 
Issue was resolved for a while

Tail end of lightdm.log - note AnneMarie is Account 2. I notice that it
spawns 26350 to switch, but that exists with a value of 1 and stops. No
reasoning why

[+20862.79s] DEBUG: Switching to user annemarie
[+20862.79s] DEBUG: Starting new display for greeter with user annemarie 
selected
[+20862.79s] DEBUG: Starting local X display
[+20862.79s] DEBUG: Using VT 8
[+20862.79s] DEBUG: Logging to /var/log/lightdm/x-1.log
[+20862.79s] DEBUG: Writing X server authority to /var/run/lightdm/root/:1
[+20862.79s] DEBUG: Launching X Server
[+20862.79s] DEBUG: Launching process 26350: /usr/bin/X :1 -auth 
/var/run/lightdm/root/:1 -nolisten tcp vt8 -novtswitch
[+20862.79s] DEBUG: Waiting for ready signal from X server :1
[+20866.54s] DEBUG: Process 26350 exited with return value 1
[+20866.54s] DEBUG: X server stopped
[+20866.54s] DEBUG: Removing X server authority /var/run/lightdm/root/:1
[+20866.54s] DEBUG: Releasing VT 8
[+20866.54s] DEBUG: Display server stopped
[+20866.54s] DEBUG: Stopping display
[+20866.54s] DEBUG: Display stopped

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https://bugs.launchpad.net/bugs/1001221

Title:
  12.04 black screen with blinking cursor when switching users

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