I can confirm this bug as well. But, after choose my username and put my 
password, the gnome desktop don't work. Just appear a xterm, where I can run 
the commands.
Package: gdm 2.27.4-0ubuntu6
ProcVersionSignature: Ubuntu 2.6.31-4.23-generic

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background not redrawn when GDM main window changes size
https://bugs.launchpad.net/bugs/405392
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