Matt, maybe if you use: passwd ldap [NOTFOUND=return] compat . .
(from man nsswitch.conf)
would also work. Anyway, closing since it was a bug in local configuration
** Changed in: gdm (Ubuntu)
Status: Unconfirmed => Rejected
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GDM does not start correctly when using libnss-ldap / libpam-ldap on edgy
https://launchpad.net/bugs/61430
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