Managed to sort this out by;
booting to command line via recovery mode via GRUB menu
renaming xorg.conf file
reinstalled Nvidia driver (this auto created a new xorg.conf file)
Added configuration lines from old xorg.conf to new xorg.conf file
Rebooted
PC now starts up OK and allows me to login without rebooting.

I thought that I should publish my fix in the hope that it may shed some
light on what the last xserver update did to break my PC

-- 
ubuntu reboots immediately after entering password at logon following xserver 
related update (29 Jan).
https://bugs.launchpad.net/bugs/187161
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