This was an OEM install, next to a vista partition, with /boot on it's
own, and the other linux partitions on an LVM on top of an encrypted
volume.

 After running through the install process, I booted into Ubuntu with the oem 
user. I clicked "Prepare for end user config"
on the desktop. After that ran, I ran all software updates and installed the 
binary nvidia driver (177) for my 8800M laptop card. I then rebooted. I didn't 
get the 
vbe error as above at the time, but I did get an error after the logo and boot 
screen.

Blank screen for a little, then:

Traceback: From last call:
-File /usr/sbin/oem-config-dm, line 136 in <module>
--sys.exit(dm.run(*sys.argv[3:]))
-File /usr/sbin/oem-config-dm, line 66 in run
--raise.XStartupError, "X server failed to start after 60 seconds"
__main__.XStartupError, "X server failed to start after 60 seconds"

-- 
[apport] oem-config-dm crashed with XStartupError in run()
https://bugs.launchpad.net/bugs/96435
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