Upgrading to Precise seems to have fixed the problem for me (nvidia-
current 295.40-0ubuntu1, lightdm 1.2.1-0ubuntu1).

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to nvidia-graphics-drivers in Ubuntu.
https://bugs.launchpad.net/bugs/873495

Title:
  LightDM fails to start after nvidia-current or nvidia-current-updates
  are installed (upstart job issue)

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

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