Same problem here, but only on my Laptop (MSI VR201) with intel graphics 
(x3100). 
I don't have the "not-working-at-all" problem mentioned by nicobrainless, 
though. 

I can also start by resuming normal boot in recovery mode and then
starting the deamons i need from commandline.

I do not however see the login screen sometimes as described by Peter
Belew on 5th of feb., but the login sound is played.

I also find, that the problem usually doesn't occur in the first reboot
after an update, but I don't know wether this is just coincidental.

Another question to me is - cause Scott J. Remnant wrote it could be an
x-server issue - if it could have something to do with intel graphics,
as i can't enable visual effects either and was able to do so before
installing lucid. Addiotionally the problem doesn't occur on my desktop,
which uses nvidia graphics.

-- 
Lucid frequently crashes while starting gdm on Averatec 3280
https://bugs.launchpad.net/bugs/508456
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