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Lightdm works fine with the default drivers.
However, after installing nvidia-current, it stops working. It only starts 
working again when I remove /etc/X11/xorg.conf.
I've been facing this bug for the last few weeks. Attempts to see if it is 
resolved after an update have failed. To see if it is working, I merely execute

$ sudo nvidia-xconfig

Graphics Card: Nvidia 9400 GT
OS: Ubuntu 11.10 64-bit

** Affects: xorg (Ubuntu)
     Importance: Undecided
         Status: New


** Tags: 11.10 lightdm nvidia ubuntu
-- 
Lightdm does not start with nvidia-current driver installed
https://bugs.launchpad.net/bugs/829163
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is subscribed to xorg in Ubuntu.

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