I have this same problem. It seemed to only allow me in under root for gnome-sessions originally. It turns out, though that it is a security breach of some sort. If I add a new user and try to log them into gnome 2.2, they log in under the root desktop. If I log into an old user, the same thing with the .xsession-errors thing happens, but if I open a failsafe xterm, it lets me in under root privileges. Like the original person who reported this, I also cvsup stable and have 4.8 rc. This also only started happening after upgrading to XFree86 4.3.0.
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