Gutsy has a new xserver-xgl package (1:1.1.99.1~git20070727-0ubuntu1),
which I believe fixes this problem. If you are using this new version
and the problem persists, please re-open this bug.
** Changed in: xserver-xgl (Ubuntu)
Status: Confirmed => Fix Released
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gnome-settings-daemon doesn't start automatically in xgl session
https://bugs.launchpad.net/bugs/75280
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