Have the same problems - it seems very erratic- xfce ran fine recently for 
about a week and assumed one of the upgrades had fixed it - now its "blank blue 
and the mouse " again - using 8.04.  The hibernate function is now failing too. 
Gnome runs fine but I don't want to default back to that.  Killing X ? Don't 
need to - just re try a few times and it MAY work !

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xfce4 does not load on normal ubuntu-desktop
https://bugs.launchpad.net/bugs/221657
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