I have an nvidia card, and the same problem. By doing this when the
error screen appears I'm able to access Ubuntu 12.04 gui. (I use the
gnome shell)

1. CTRL + ALT + F1
2. (login)
3. sudo start lightdm

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-ati in Ubuntu.
https://bugs.launchpad.net/bugs/975414

Title:
  lightdm failed to run

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