The garbage seems to be normal, as it is exactly the same in my Feisty
installation.

Adding "DRI" "off" does the trick, I can now login with a normal Gnome
session. However, the Desktop panels don't appear, I can only see the
"Install" and "Examples" icons. The X session is now not on tty9 any
more but on tty7 and I can also see the message telling me to press
enter when I shut down the computer.

-- 
Login fails, X crashes[Gutsy daily-live 20070925, AMD64]
https://bugs.launchpad.net/bugs/144760
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