I had a similar problem (upon upgrade from feisty to gutsy) and I think it was 
a problem with gnome-power-manager.
When I ran gnome-power-manager in a terminal, it couldn't find 
/usr/lib/libwnck-1.so-18.

I made a symbolic link as follows:

sudo ln -s /usr/lib/libwnck-1.so.22 /usr/lib/libwnck-1.so.18

and made sure that gnome-power-manager was running in my gnome session,

(System->Preferences->Sessions  and check Power Manager)

and now there is no hang.

-- 
gnome-session hangs when "lo" is not correctly configured
https://bugs.launchpad.net/bugs/26419
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