Problem still exists in 13.10 64-bit
lightdm version 1.8.4.0ubuntu1

Only restart of LightDM (sudo service lightdm restart) from a terminal
(with Alt-F1) resolves the problem, but it also kills the running
session.

Because this is such a long standing and basic bug (mind you: one only
has to click the logged in user name and Switch User to run into it) I
agree with J.C. Blouin that the importance should be higher.

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https://bugs.launchpad.net/bugs/1001221

Title:
  12.04 black screen with blinking cursor when switching users

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