I haven't seen this in a real machine, but I'm running Natty inside
VirtualBox 4.06 under Windows and I get this problem there.

** (gnome-settings-daemon:1351): WARNING **: You can only run one xsettings 
manager at a time; exiting
** (gnome-settings-daemon:1351): WARNING **: Unable to start xsettings manager: 
Could not initialize xsettings manager.

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https://bugs.launchpad.net/bugs/649809

Title:
  the session settings manager can try starting before the login screen
  one exits

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