This bug was fixed in the package xorg - 1:7.5~3ubuntu3

---------------
xorg (1:7.5~3ubuntu3) lucid; urgency=low

  * debian/x11-common.failsafe-x.upstart: (LP: #453365)
    - Start on the build-failed signal that DKMS may emit
      during a failed build for nvidia or fglrx.
 -- Mario Limonciello <mario_limoncie...@dell.com>   Mon, 14 Dec 2009 14:17:21 
-0600

** Changed in: xorg (Ubuntu)
       Status: In Progress => Fix Released

-- 
dkms should start before gdm if needed for video driver
https://bugs.launchpad.net/bugs/453365
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