Yes - this worked fine in 11.04 - as far as we can tell the issue
appears to be with LightDM ( which was not present in 11.04 ).

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https://bugs.launchpad.net/bugs/873495

Title:
  LightDM fails to start when installed in OEM mode after nvidia-current
  or nvidia-current-updates are installed

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https://bugs.launchpad.net/lightdm/+bug/873495/+subscriptions

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