gnome-settings-daemon keeps failing on start

Binary package hint: gnome-panel

Im on a Dell xps M1330

With the last update of the gutsy round of packages gnome-settings-daemon wont start. this started this morning sep 17.

I tried restarting it to see if any error message would pop-up and this is what i got

$ sudo gnome-settings-daemon
** (gnome-settings-daemon:8249): WARNING **: Unable to connect to dbus: Did not receive a reply. Possible causes include: the remote application did not send a reply, the message bus security policy blocked the reply, the reply timeout expired, or the network connection was broken.

(gnome-settings-daemon:8249): GnomeKbdIndicator-WARNING **: Unable to connect to dbus: Did not receive a reply. Possible causes include: the remote application did not send a reply, the message bus security policy blocked the reply, the reply timeout expired, or the network connection was broken.

(gnome-settings-daemon:8249): GnomeKbdIndicator-WARNING **: Not connected to dbus, will not register the object
The program 'gnome-settings-daemon' received an X Window System error.
This probably reflects a bug in the program.
The error was 'BadValue (integer parameter out of range for operation)'.
  (Details: serial 1117 error_code 2 request_code 148 minor_code 35)
  (Note to programmers: normally, X errors are reported asynchronously;
   that is, you will receive the error a while after causing it.
   To debug your program, run it with the --sync command line
   option to change this behavior. You can then get a meaningful
   backtrace from your debugger if you break on the gdk_x_error() function.)
[1190061470,000,xklavier.c:xkl_engine_start_listen/] The backend does not require manual layout management - but it is provided by the application

ProblemType: Bug
Architecture: i386
Date: Mon Sep 17 13:35:02 2007
DistroRelease: Ubuntu 7.10
ExecutablePath: /usr/bin/gnome-panel
NonfreeKernelModules: nvidia
Package: gnome-panel 1:2.19.92-0ubuntu1
PackageArchitecture: i386
ProcCmdline: gnome-panel --sm-config-prefix /gnome-panel-zqji93/ --sm-client-id 117f000101000119004489200000057560001 --screen 0
ProcCwd: /home/kcin1204
ProcEnviron:
 SHELL=/bin/bash
 PATH=/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin:/usr/games
 LANG=en_US.UTF-8
SourcePackage: gnome-panel
Uname: Linux absolut-lappy 2.6.22-11-generic #1 SMP Mon Sep 17 03:45:58 GMT 2007 i686 GNU/Linux