I have to report that this bug does also affect other login-managers (well, one
at least: Slim).
And I am using a Nvidia 9500gt video card - not an ATI. So it does not seem to
have much to do with the video card actually.
I had the same problem: After an update with the automated update-manager
yesterday and the following reboot I was left with the "low graphics
mode"-error.
_Sometimes_ clicking through "run in low-graphics-mode for one session" etc.
led me to my normal login (with Slim). And I would even get a running Compiz...
a bit surprising for the expected "low-graphics-mode"... but Compiz would
silently die sometime in between and leave me without graphic-effects.
Yet very often after reboot I was left without a login and only with scrambled
colors on top of the screen or, even worse, a crashed system with a black blank
screen where only turning power off helped!
I tried many possible solution-variations of tinkering with xorg.conf,
deleting and reinstalling the Nvidia-drivers etc. - all to no avail. I
was so sure that this had something to do with the updated kernel and
non-fitting or conflicting video-drivers...
But it was apparently a conflict between GDM and "the other login-manager" - in
my case Slim, not KDM.
Directly after deinstalling Slim and "dpkg-reconfigure gdm" the
"low-graphics-mode" problem is gone.
Seems to me its _not_ KDM or Slim who are having the bug.
** Also affects: slim
Importance: Undecided
Status: New
--
after recent update which included xorg, xserver etc causes low-graphics mode
error at start
https://bugs.launchpad.net/bugs/491483
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