I had this problem after doing a fresh installation of Gutsy and then
running "aptititude dist-upgrade" with a local copy of the Ubuntu
repository.

To resolve it, I uninstalled ubuntu-desktop (and everything that it
automatically pulls in) and then re-installed it.  I got some errors
(related to dbus or udev?) about power-manager settings but those are
gone now.

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Can't log in after upgrading
https://bugs.launchpad.net/bugs/136529
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