I think I nailed it down. I have a ecryptfs directory from previous
install (I installed natty from a USB stick but preserved my home
directory). If I move $HOME/.ecryptfs somewhere else (i.e. mv .ecryptfs
Desktop), autologin starts to work. Of course, it is then no longer
possible to unlock the Private directory.

Can anyone confirm this or am I experiencing different bug than others?

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https://bugs.launchpad.net/bugs/753707

Title:
  gdm autologin does not work in Natty

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