So, after making sure that the setlocale () call behaves identically on gutsy and hardy I moved on and downgraded to the gdm version of gutsy (updates). Which is 2.20.1 and the problem disappeared. So this is totally caused by a change in gdm (2.20.1 -> 2.20.3). Looking at the diff didnt reveal anything too obvious. I will have a closer look. Any gdm people around?
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