It sounds like gdm is getting confused by the Virtual keyword in
xorg.conf.
IIRC, Virtual was added to support xrandr. Two things need to be
researched: A. What this parameter enables. B. Why gdm is getting
confused by it.
Also, I suspect there are a number of dupes of this bug (like 139912
possibly) that should be duped together with this one.
** Changed in: xorg (Ubuntu)
Sourcepackagename: None => xorg
Importance: Undecided => High
Status: New => Triaged
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gdm uses incorrect screen resolution
https://bugs.launchpad.net/bugs/146828
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