I have the same problem (also upgraded from 10.04 to 10.10 (both
x86_64). gdm opens but fails to login because it restarts the X server.

As a workaround, I disabled gdm by editing etc/init/gdm.conf. At the
console, I can login and start the X server with startx.

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gdm broken after update to 10.10 - instant session end - signal 15 - after login
https://bugs.launchpad.net/bugs/663135
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