Just made a clean 64bit install from alternate (for RAID and LVM) same
problem.

Solved by
  sudo apt-get remove lightdm
  sudo apt-get install gdm

  reboot in recovery mode
  add myself to sudo group (/etc/group and /etc/gshadow)
  reboot normally

  sudo apt-get install lightdm
  sudo apt-get install ubuntu-desktop

  sudo bash
  passwd root
  System Definitions -> User Accounts -> unlock (use root password)
  make myself an Admin user

For some reason I had lost my admin rights too so I had to do those
extra steps do recover it (why?).

Now Hibernate and Suspend are also option on the Gear button.

(while in gdm the desktop start was *much* slower).

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to lightdm in Ubuntu.
https://bugs.launchpad.net/bugs/851055

Title:
  [Oneiric] 'Not Authorized' error given when mounting device

Status in “lightdm” package in Ubuntu:
  Fix Released
Status in “lightdm” source package in Oneiric:
  Fix Released

Bug description:
  Oneiric Ocelot with latest update. Nautilus, Disk Utility are unable
  to mount/format/create partitions on USB drives.

  User is presented with 'Not Authorized' error.

  ProblemType: Bug
  DistroRelease: Ubuntu 11.10
  Package: gvfs 1.9.5-0ubuntu1
  ProcVersionSignature: Ubuntu 3.0.0-11.18-generic 3.0.4
  Uname: Linux 3.0.0-11-generic x86_64
  ApportVersion: 1.23-0ubuntu1
  Architecture: amd64
  Date: Thu Sep 15 18:07:58 2011
  EcryptfsInUse: Yes
  HotplugNewDevices: /dev/sdb /dev/sdb1 /dev/sdb3 /dev/sdb2
  HotplugNewMounts:

  InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Beta amd64 (20110901)
  SourcePackage: gvfs
  Symptom: storage
  Title: Does not detect hotplugged storage device
  UpgradeStatus: No upgrade log present (probably fresh install)

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