I found a solution here http://64.233.183.104/search?q=cache:GEWyy-
P5TlkJ:ubuntuforums.org/archive/index.php/t-429735.html+ubuntu+gdm+hourglass&hl=en&ct=clnk&cd=6&gl=uk.

I had to install kdm as gdm refused to work at all. hope this helps :-)

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gdm won't start the first time; second does
https://bugs.launchpad.net/bugs/114232
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