Hi guys. I'm running a new Gutsy Gibbon system that I just set up, and I
have exactly this same problem. I have an infinite loop of
'Authentication Failed' stuff on GDM, but VT logins work. I tried to
blow away just the GDM config files and restore from defaults, but that
didn't seem to fix it.

I'm no developer, but if you want to try and take a peek at this bug
while it's still borked I'm willing to help. I think  it happened when I
was switching from 'automatic login' to 'timed login'. When I looked at
the config file in the terminal, it appeared that both auto login and
timed login were both activated. I disabled auto-login and left timed
login alone and it was still borked, tho, so I'm not sure if that's what
was doing it.

I'm going to try and fix it tonight, then try and see if I can replicate
it to confirm what caused it, but if there's anything else I can do to
help, please let me know.

Thanks, Ardyn.

-- 
GDM "Authentication Failure" infinite loop
https://bugs.launchpad.net/bugs/164039
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