This was fixed by kde-window-manager 4:4.5.1-0ubuntu3 with the change:
* Add kubuntu_29_fallback_to_xrender_compositing.diff
fallback to XRender compositing in case of Software Rasterizer.
(backport from trunk)
** Changed in: xorg-server (Ubuntu)
Status: Incomplete => Fix Released
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KDE4 not started after login - X crashed
https://bugs.launchpad.net/bugs/638871
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