Same problem here.  I have a different last messages in my
Xorg.2[01].log files:

(II) Open ACPI successful (/var/run/acpid.socket)
(II) Loader magic: 0x81d9a40
(II) Module ABI versions:
        X.Org ANSI C Emulation: 0.4
        X.Org Video Driver: 4.1
        X.Org XInput driver : 2.1
        X.Org Server Extension : 1.1
        X.Org Font Renderer : 0.6
(II) Loader running on linux
(++) using VT number 9


Fatal server error:
xf86OpenConsole: VT_WAITACTIVE failed: Interrupted system call


(IBM Thinkpad T43, ubuntu 8.10 with all updates applied)

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guest session, switch user, fail, "cannot start new display"
https://bugs.launchpad.net/bugs/330153
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