I tested the DRM PPA as requested in comment #4:

>The DRM PPA is here:
>
>    https://edge.launchpad.net/~apw/+archive/red

I've been testing for three days.  It seems to completely fix this bug.

$ uname -a
Linux seal 2.6.32-16-generic-pae #24-Ubuntu SMP Sat Mar 6 14:03:05 UTC 2010 
i686 GNU/Linux

-- 
On first login, but not second, switch user freezes X
https://bugs.launchpad.net/bugs/526181
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