I just had this too with a fresh install of ubuntu-gnome, after install and 
update and dist-upgrade everything was fine. I then added the gnome3 and 
gnome3-staging and ricotz-testing ppa's and no login prompt or anything just a 
blue background and a x cursor. tried lightdm and gdm both the same story.
then i thought hmmm graphics issue again with G-S so installed the  
nvidia-current and all was working again. :-)

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https://bugs.launchpad.net/bugs/1162466

Title:
  GDM wont start on Ubuntu GNOME using Gnome3 ppa

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