Comment 33 for bug 107115

i to had this problem. however i can confirm that the above workaround does the trick. im using ubuntu studio 7.04. ati radeon xpress 200 chipset (desktop) here. as for the people who this isnt working for be sure to remove the "#" from the beginning of the line. where it says #AlwaysRestartServer=off should be changed to AlwaysRestartServer=true. also besure its like that in tall of the following files:

factory-gdm.conf
gdm.conf
gdm.conf-custom
gdm-cdd.conf

not everyone will have to change all 4 files but in my case i had to.

you will have to do (from terminal) sudo gedit /etc/X11/gdm/"filename here" to change each one though. hope this helps those still having a problem.