After some time (around 3-5 mins), flickering stopped and I could login. 
Starting gdm by 'sudo gdm' is aborted with
** (gdm-binary:13911): WARNING **: Failed to acquire org.gnome.DisplayManager
** (gdm-binary:13911): WARNING **: Failed to acquire oname; bailing out

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[Karmic Alpha6] displays flickers and no gdm is started
https://bugs.launchpad.net/bugs/438341
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