Ok all, I've done some digging around it Lightdm is trying to start
before UDEV reports the graphics devices as being ready. Please see
#969489

By adding 'and stopped udevtrigger to lightdm.conf has fixed the issue
for me.

/etc/init/lightdm.conf:

start on ((filesystem
           and runlevel [!06]
           and started dbus
 #Added the following line
           and stopped udevtrigger
           and (drm-device-added card0 PRIMARY_DEVICE_FOR_DISPLAY=1
                or stopped udev-fallback-graphics))
          or runlevel PREVLEVEL=S)

There is opinion that UDEV needs the full path to 'card0' but I suggest
that for those with more than one graphics card (eg. Optimus) that a
race condition could happen if your nVidia appears first. I don't know
yet if this is possible though, someone with a better understanding than
me of UDEV would have to comment on that.

Either way, I'm inclined to mark this ticket as a duplicate of #969489
as it is an older ticket with more substance. This ticket has a lot more
heat so can I suggest that you all head over to the other ticket and
mark it as affecting you?

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https://bugs.launchpad.net/bugs/1066410

Title:
  lightdm doesn't load correctly on Ubuntu 12.10

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