Retested after today's X updates and the problem is still present.

If I logout of the only user session, I get the problem described
(cursor only and the KDM screen is present, so I can put a password in,
but not see anything other than the mouse pointer).  If I activate a
second user session (from the option from a locked screen) I can start
the new user session, switch back and forth, and log out of the second
one with no problems.

-- 
kdm does not restart X server (that crashed on logout)
https://bugs.launchpad.net/bugs/432521
You received this bug notification because you are a member of Ubuntu-X,
which is the registrant for xf86-video-intel.

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