I encountered this bug too. Here is how I was able to work around it.
After using the System->Administration->Users and Groups tool to change
my password, I encountered the conditions exactly as the original bug
filer did under "2 - What actually happened" in his bug report.
I pressed Ctrl-Alt-F
Public bug reported:
I have a Core i7 with an Asus P6T Deluxe motherboard. Installed 9.04
because Kernel 2.6.28 would support the audio on the new Core i7
chipset.
Sound was working great until a system update today. Now there are no
audio devices detected. The drums sound plays at the log in s