I can confirm this bug, using gdm version 2.14.7-0ubuntu1 from dapper-
updates.
And I don't know if this related, but first time this happened right
after update+reboot, my screen resolution, not the login one, was reset
to 1024x768 from 1280x1024.
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Automatic login requires password since upda
Sorry, duplicate.
** Changed in: gdm (Ubuntu)
Status: Confirmed => Rejected
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Automatic login requires password since update to GNOME 2.14.2
https://launchpad.net/bugs/50027
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