The issue was lightdm-gtk-greeter was not installed, according to IRC channel #ubuntu+1:
17:59 < micahg > a new upload ubuntu3 of lightdm was done ~20 minutes ago, that should fix the issues -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/816646 Title: new update in oneiric broke start-up To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/lightdm/+bug/816646/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
