I too suffered from this issue after the xorg updates in question.  My
Toshiba Satellite M45-S265 laptop uses an Intel 915GM graphics card.  I
also stopped experiencing this issue when switching to GDM.  I reverted
back to the older xorg package versions as mentioned above, which got
rid of the issue.  I can now use KDM with no errors.

Prior to this, the only way I could still login with KDM was to hit
"ESC" when the Kubuntu splash screen appeared, then hit CTRL+C
repeatedly after the bootup steps started appearing onscreen.

-- 
after recent update which included xorg, xserver etc causes low-graphics mode 
error at start
https://bugs.launchpad.net/bugs/491483
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xorg-server in ubuntu.

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