Ubuntu freezes on every boot (with video artifacts) and also bug#982889

After installing ubuntu-12.10-desktop-amd64.iso and it reboots to GUI for first time, and I see some random dots and sometimes other video artifacts on my screen. Then I waited until Software Updater icon showed in the bar and as soon as I run the first program (Nautilus in this case), everything freezes and there are a lot of dots on screen that almost form vertical lines every inch or two apart. It almost looks there is a chicken wire mesh (but mostly all vertical) in front of my screen. BTW, from past re-installs I know this also happens if I run Nautilus first and then it freezes at the exact time the Software Updater icon shows up. I can (and did) clear this up by hitting Ctrl-Alt-Del and then clicking Cancel (to not log off), but I have to do this within 5 or maybe 10 seconds or else it won't work. From the past dozen re-installs I know that this will happen once after every boot, except that future boots will not wait until I run a program before it happens.

I also suffer from bug#982889, but I'm not sure if this is related or if this is a second problem. I think they are separate problems because I only get bug#982889 after I let Software Updater install all updates and then reboot. From the last couple of days of re-installing Ubuntu, doing the Ctrl-Alt-F2 and "sudo killall Xorg" does let me into the GUI and adding the sleep in lightdm.conf does bypass bug#982889 and gets to GUI without doing Ctrl-Alt-F2, but does not stop the GUI from freezing with the video artifacts.

Since the Package Manager Troubleshooting procedure installs all updates, I will come back and run the procedure again after rebooting and report if anything has changed. Hmm, terminal is not letting me go all the way to the beginning, is there any way around that? Here is my terminal output:

Preparing to replace gnome-keyring 3.6.0-0ubuntu1 (using .../gnome-keyring_3.6.1-0ubuntu1_amd64.deb) ...
Unpacking replacement gnome-keyring ...
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update-alternatives: using /etc/X11/xinit/xinput.d/default-xim to provide /etc/X11/xinit/xinput.d/all_ALL (xinput-all_ALL) in auto mode
update-alternatives: using /etc/X11/xinit/xinput.d/none to provide /etc/X11/xinit/xinput.d/all_ALL (xinput-all_ALL) in auto mode
update-alternatives: using /etc/X11/xinit/xinput.d/th-gtk to provide /etc/X11/xinit/xinput.d/th_TH (xinput-th_TH) in auto mode
Unpacking replacement im-switch ...
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Selecting previously unselected package linux-image-extra-3.5.0-23-generic.
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Preparing to replace adium-theme-ubuntu 0.3.2-0ubuntu1 (using .../adium-theme-ubuntu_0.3.3-0ubuntu0.1_all.deb) ...
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Preparing to replace libreoffice-ogltrans 1:3.6.2~rc2-0ubuntu3 (using .../libreoffice-ogltrans_1%3a3.6.2~rc2-0ubuntu4_amd64.deb) ...
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Preparing to replace libreoffice-pdfimport 1.0.6+LibO3.6.2~rc2-0ubuntu3 (using .../libreoffice-pdfimport_1.0.6+LibO3.6.2~rc2-0ubuntu4_amd64.deb) ...
Unpacking replacement libreoffice-pdfimport ...
Preparing to replace remote-login-service 1.0.0-0ubuntu1 (using .../remote-login-service_1.0.0-0ubuntu1.1_amd64.deb) ...
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Processing 1 changed doc-base file...
Setting up libperl5.14 (5.14.2-13ubuntu0.1) ...
Setting up libapt-inst1.5:amd64 (0.9.7.5ubuntu5.2) ...
Setting up libglib2.0-data (2.34.1-1ubuntu1) ...
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Setting up libdconf1:amd64 (0.14.1-0ubuntu0.1) ...
Setting up dconf-service (0.14.1-0ubuntu0.1) ...
Setting up dconf-gsettings-backend:amd64 (0.14.1-0ubuntu0.1) ...
Setting up mountall (2.42ubuntu0.4) ...
Setting up appmenu-gtk:amd64 (12.10.2-0ubuntu1.3) ...
Installing new version of config file /etc/X11/Xsession.d/80appmenu ...
Setting up appmenu-gtk3:amd64 (12.10.2-0ubuntu1.3) ...
Installing new version of config file /etc/X11/Xsession.d/80appmenu-gtk3 ...
Setting up libtiff5:amd64 (4.0.2-1ubuntu2.1) ...
Setting up libcups2:amd64 (1.6.1-0ubuntu11.3) ...
Setting up libcupsfilters1:amd64 (1.0.24-2ubuntu0.1) ...
Setting up libcupsimage2:amd64 (1.6.1-0ubuntu11.3) ...
Setting up libfontembed1:amd64 (1.0.24-2ubuntu0.1) ...
Setting up libfreetype6:amd64 (2.4.10-0ubuntu1.1) ...
Setting up libpoppler28:amd64 (0.20.4-0ubuntu1.1) ...
Setting up cups-filters (1.0.24-2ubuntu0.1) ...
Setting up cups-common (1.6.1-0ubuntu11.3) ...
Setting up cups-client (1.6.1-0ubuntu11.3) ...
Setting up cups-bsd (1.6.1-0ubuntu11.3) ...
Setting up libcupsmime1:amd64 (1.6.1-0ubuntu11.3) ...
Setting up libcupscgi1:amd64 (1.6.1-0ubuntu11.3) ...
Setting up libcupsppdc1:amd64 (1.6.1-0ubuntu11.3) ...
Setting up libcairo2:amd64 (1.12.2-1ubuntu2.2) ...
Setting up poppler-utils (0.20.4-0ubuntu1.1) ...
Setting up cups-ppdc (1.6.1-0ubuntu11.3) ...
Setting up cups (1.6.1-0ubuntu11.3) ...
cups start/running, process 18051
p11-kit: duplicate configured module: gnome-keyring.module: /usr/lib/x86_64-linux-gnu/pkcs11/gnome-keyring-pkcs11.so
p11-kit: duplicate configured module: gnome-keyring.module: /usr/lib/x86_64-linux-gnu/pkcs11/gnome-keyring-pkcs11.so
Updating PPD files for cups ...
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Setting up libgtk-3-common (3.6.0-0ubuntu3.2) ...
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Setting up libatspi2.0-0:amd64 (2.6.1-0ubuntu0.1) ...
Setting up at-spi2-core (2.6.1-0ubuntu0.1) ...
Setting up libgtk-3-0:amd64 (3.6.0-0ubuntu3.2) ...
Setting up libgtk-3-bin (3.6.0-0ubuntu3.2) ...
Setting up libgail-3-0:amd64 (3.6.0-0ubuntu3.2) ...
Setting up libnautilus-extension1a (1:3.5.90.really.3.4.2-0ubuntu4.1) ...
Setting up libdee-1.0-4 (1.0.14-0ubuntu1.1) ...
Setting up libunity-protocol-private0:amd64 (6.12.0-0ubuntu0.1) ...
Setting up libunity9:amd64 (6.12.0-0ubuntu0.1) ...
Setting up duplicity (0.6.19-0ubuntu2.2) ...
Setting up deja-dup (24.0-0ubuntu2) ...
Setting up nautilus-data (1:3.5.90.really.3.4.2-0ubuntu4.1) ...
Setting up gnome-settings-daemon (3.4.2-0ubuntu15) ...
Setting up gnome-screensaver (3.6.0-0ubuntu2) ...
Setting up libimobiledevice3 (1.1.4-1ubuntu3) ...
Setting up libgpod4:amd64 (0.8.2-6ubuntu1) ...
Setting up libgstreamer-plugins-base0.10-0:amd64 (0.10.36-1ubuntu1.1) ...
Setting up libpoppler-glib8:amd64 (0.20.4-0ubuntu1.1) ...
Setting up libreoffice-style-human (1:3.6.2~rc2-0ubuntu4) ...
Setting up libreoffice-style-tango (1:3.6.2~rc2-0ubuntu4) ...
Setting up libreoffice-common (1:3.6.2~rc2-0ubuntu4) ...
Setting up fonts-opensymbol (2:102.2+LibO3.6.2~rc2-0ubuntu4) ...
Setting up libboost-date-time1.49.0 (1.49.0-3.1ubuntu1.1) ...
Setting up libreoffice-core (1:3.6.2~rc2-0ubuntu4) ...
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Setting up libsecret-common (0.11-0ubuntu0.12.10.1) ...
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Setting up libssh-4:amd64 (0.5.2-1ubuntu0.12.10.2) ...
Setting up libtelepathy-logger2:amd64 (0.4.0-2~ubuntu12.10.0) ...
Setting up telepathy-logger (0.4.0-2~ubuntu12.10.0) ...
Setting up libudisks2-0:amd64 (2.0.0-1ubuntu1) ...
Setting up linux-image-3.5.0-23-generic (3.5.0-23.35) ...
Running depmod.
update-initramfs: deferring update (hook will be called later)
Examining /etc/kernel/postinst.d.
run-parts: executing /etc/kernel/postinst.d/initramfs-tools 3.5.0-23-generic /boot/vmlinuz-3.5.0-23-generic
update-initramfs: Generating /boot/initrd.img-3.5.0-23-generic
run-parts: executing /etc/kernel/postinst.d/pm-utils 3.5.0-23-generic /boot/vmlinuz-3.5.0-23-generic
run-parts: executing /etc/kernel/postinst.d/update-notifier 3.5.0-23-generic /boot/vmlinuz-3.5.0-23-generic
run-parts: executing /etc/kernel/postinst.d/zz-update-grub 3.5.0-23-generic /boot/vmlinuz-3.5.0-23-generic
Generating grub.cfg ...
Found linux image: /boot/vmlinuz-3.5.0-23-generic
Found initrd image: /boot/initrd.img-3.5.0-23-generic
Found linux image: /boot/vmlinuz-3.5.0-17-generic
Found initrd image: /boot/initrd.img-3.5.0-17-generic
Adding boot menu entry for EFI firmware configuration
done
Setting up python3.2-minimal (3.2.3-6ubuntu3.1) ...
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Found initrd image: /boot/initrd.img-3.5.0-23-generic
Found linux image: /boot/vmlinuz-3.5.0-17-generic
Found initrd image: /boot/initrd.img-3.5.0-17-generic
Adding boot menu entry for EFI firmware configuration
done
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Setting up firefox (18.0.2+build1-0ubuntu0.12.10.1) ...
Please restart all running instances of firefox, or you will experience problems.
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Setting up gedit (3.6.1-0ubuntu1) ...
update-alternatives: using /usr/bin/gedit to provide /usr/bin/gnome-text-editor (gnome-text-editor) in auto mode
Setting up gir1.2-atspi-2.0 (2.6.1-0ubuntu0.1) ...
Setting up gir1.2-gst-plugins-base-0.10 (0.10.36-1ubuntu1.1) ...
Setting up libjavascriptcoregtk-3.0-0 (1.10.0-0ubuntu1.1) ...
Setting up libwebkitgtk-3.0-common (1.10.0-0ubuntu1.1) ...
Setting up libwebkitgtk-3.0-0 (1.10.0-0ubuntu1.1) ...
Setting up gir1.2-javascriptcoregtk-3.0 (1.10.0-0ubuntu1.1) ...
Setting up gir1.2-webkit-3.0 (1.10.0-0ubuntu1.1) ...
Setting up librhythmbox-core6 (2.97-1ubuntu6.1) ...
Setting up rhythmbox-data (2.97-1ubuntu6.1) ...
Setting up gstreamer0.10-x:amd64 (0.10.36-1ubuntu1.1) ...
Setting up gir1.2-rb-3.0 (2.97-1ubuntu6.1) ...
Setting up rhythmbox (2.97-1ubuntu6.1) ...
Setting up rhythmbox-plugin-zeitgeist (2.97-1ubuntu6.1) ...
Setting up rhythmbox-plugin-magnatune (2.97-1ubuntu6.1) ...
Setting up rhythmbox-plugin-cdrecorder (2.97-1ubuntu6.1) ...
Setting up rhythmbox-mozilla (2.97-1ubuntu6.1) ...
Setting up nautilus (1:3.5.90.really.3.4.2-0ubuntu4.1) ...
Setting up rhythmbox-plugins (2.97-1ubuntu6.1) ...
Setting up libtotem0 (3.4.3-0ubuntu5) ...
Setting up totem-common (3.4.3-0ubuntu5) ...
Setting up totem (3.4.3-0ubuntu5) ...
Setting up totem-mozilla (3.4.3-0ubuntu5) ...
Setting up gir1.2-totem-1.0 (3.4.3-0ubuntu5) ...
Setting up totem-plugins (3.4.3-0ubuntu5) ...
Setting up gnome-games-data (1:3.6.0.2-0ubuntu1.2) ...
Setting up gnomine (1:3.6.0.2-0ubuntu1.2) ...
Setting up gnome-sudoku (1:3.6.0.2-0ubuntu1.2) ...
Setting up gnome-mahjongg (1:3.6.0.2-0ubuntu1.2) ...
Setting up gnome-keyring (3.6.1-0ubuntu1) ...
Installing new version of config file /etc/xdg/autostart/gnome-keyring-gpg.desktop ...
Installing new version of config file /etc/xdg/autostart/gnome-keyring-ssh.desktop ...
Installing new version of config file /etc/xdg/autostart/gnome-keyring-secrets.desktop ...
Installing new version of config file /etc/xdg/autostart/gnome-keyring-pkcs11.desktop ...
Setting up gnome-orca (3.7.0.94-0ubuntu0.1) ...
Setting up vino (3.6.0-0ubuntu1.1) ...
Setting up gnome-session-bin (3.6.0-0ubuntu1.1) ...
Setting up gnome-session-common (3.6.0-0ubuntu1.1) ...
Setting up gnome-session (3.6.0-0ubuntu1.1) ...
Setting up gnome-system-log (3.6.0-0ubuntu1.1) ...
Setting up gstreamer0.10-alsa:amd64 (0.10.36-1ubuntu1.1) ...
Setting up im-switch (1.22ubuntu2.1) ...
Installing new version of config file /etc/X11/Xsession.d/80im-switch ...
update-alternatives: using /etc/X11/xinit/xinput.d/default to provide /etc/X11/xinit/xinput.d/all_ALL (xinput-all_ALL) in auto mode
update-alternatives: using /etc/X11/xinit/xinput.d/lo-gtk to provide /etc/X11/xinit/xinput.d/lo_TH (xinput-lo_TH) in auto mode
update-alternatives: using /etc/X11/xinit/xinput.d/th-xim to provide /etc/X11/xinit/xinput.d/th_TH (xinput-th_TH) in auto mode
Setting up indicator-datetime (12.10.2-0ubuntu3.1) ...
Setting up libgpod-common (0.8.2-6ubuntu1) ...
Setting up libpam-gnome-keyring (3.6.1-0ubuntu1) ...
Setting up libreoffice-emailmerge (1:3.6.2~rc2-0ubuntu4) ...
Setting up libreoffice-presentation-minimizer (1.0.4+LibO3.6.2~rc2-0ubuntu4) ...
Setting up libreoffice-presenter-console (1.1.1+LibO3.6.2~rc2-0ubuntu4) ...
Setting up linux-image-extra-3.5.0-23-generic (3.5.0-23.35) ...
Running depmod.
update-initramfs: deferring update (hook will be called later)
Examining /etc/kernel/postinst.d.
run-parts: executing /etc/kernel/postinst.d/initramfs-tools 3.5.0-23-generic /boot/vmlinuz-3.5.0-23-generic
update-initramfs: Generating /boot/initrd.img-3.5.0-23-generic
run-parts: executing /etc/kernel/postinst.d/pm-utils 3.5.0-23-generic /boot/vmlinuz-3.5.0-23-generic
run-parts: executing /etc/kernel/postinst.d/update-notifier 3.5.0-23-generic /boot/vmlinuz-3.5.0-23-generic
run-parts: executing /etc/kernel/postinst.d/zz-update-grub 3.5.0-23-generic /boot/vmlinuz-3.5.0-23-generic
Generating grub.cfg ...
Found linux image: /boot/vmlinuz-3.5.0-23-generic
Found initrd image: /boot/initrd.img-3.5.0-23-generic
Found linux image: /boot/vmlinuz-3.5.0-17-generic
Found initrd image: /boot/initrd.img-3.5.0-17-generic
Adding boot menu entry for EFI firmware configuration
done
Setting up linux-image-generic (3.5.0.23.29) ...
Setting up linux-libc-dev:amd64 (3.5.0-23.35) ...
Setting up python-problem-report (2.6.1-0ubuntu10) ...
Setting up python-apport (2.6.1-0ubuntu10) ...
Setting up python-dbus-dev (1.1.1-1ubuntu0.1) ...
Setting up python-dbus (1.1.1-1ubuntu0.1) ...
Setting up python-gobject (3.4.0-1ubuntu0.1) ...
Setting up python-libxml2 (2.8.0+dfsg1-5ubuntu2.1) ...
Setting up python3-gi-cairo (3.4.0-1ubuntu0.1) ...
Setting up seahorse (3.6.2-0ubuntu1) ...
Setting up software-center (5.4.1.3) ...
Updating software catalog...this may take a moment.
INFO:softwarecenter.db.pkginfo_impl.aptcache:aptcache.open()
Software catalog update was successful.
Setting up unity-lens-photos (0.9-0ubuntu1) ...
Setting up unity-scope-video-remote (0.3.10-0ubuntu1) ...
Setting up x11-apps (7.7~2ubuntu1.1) ...
Setting up xul-ext-ubufox (2.6-0ubuntu0.12.10.1) ...
Setting up adium-theme-ubuntu (0.3.3-0ubuntu0.1) ...
Setting up libreoffice-ogltrans (1:3.6.2~rc2-0ubuntu4) ...
Setting up libreoffice-pdfimport (1.0.6+LibO3.6.2~rc2-0ubuntu4) ...
Setting up remote-login-service (1.0.0-0ubuntu1.1) ...
Setting up shotwell (0.13.1-0ubuntu1) ...
Setting up python3-distupgrade (1:0.190.5) ...
Setting up python3-update-manager (1:0.174.4) ...
Setting up ubuntu-release-upgrader-core (1:0.190.5) ...
Setting up update-manager-core (1:0.174.4) ...
Setting up overlay-scrollbar-gtk3:amd64 (0.2.16+r357-0ubuntu1.1) ...
Setting up perl-modules (5.14.2-13ubuntu0.1) ...
Setting up unity-webapps-service (2.4.1-0ubuntu3.2) ...
Setting up libunity-webapps0 (2.4.1-0ubuntu3.2) ...
Setting up bamfdaemon (0.3.4-0ubuntu1) ...
Rebuilding /usr/share/applications/bamf.index...
Setting up libbamf3-0:amd64 (0.3.4-0ubuntu1) ...
Setting up unity (6.12.0-0ubuntu0.2) ...
Setting up xul-ext-unity (2.4.1-0ubuntu1.2) ...
Please restart all running instances of firefox, or you will experience problems.
Setting up indicator-appmenu (12.10.3-0ubuntu2.1) ...
Setting up overlay-scrollbar (0.2.16+r357-0ubuntu1.1) ...
Setting up unity-webapps-common (2.4.10-0ubuntu1) ...
Setting up perl (5.14.2-13ubuntu0.1) ...
Setting up gstreamer0.10-plugins-base-apps (0.10.36-1ubuntu1.1) ...
Setting up lintian (2.5.10.2ubuntu2.1) ...
Setting up overlay-scrollbar-gtk2:amd64 (0.2.16+r357-0ubuntu1.1) ...
Setting up ubuntu-release-upgrader-gtk (1:0.190.5) ...
Setting up update-manager (1:0.174.4) ...
Processing triggers for libc-bin ...
ldconfig deferred processing now taking place
eddie@eddie-To-be-filled-by-O-E-M:~$ find /etc/apt -name '*.list' -exec bash -c 'echo -e "\n$1\n"; cat -n "$1"' _ '{}' \;

/etc/apt/sources.list

     1 # deb cdrom:[Ubuntu 12.10 _Quantal Quetzal_ - Release amd64 (20121017.5)]/ quantal main restricted
     2
     3 # See http://help.ubuntu.com/community/UpgradeNotes for how to upgrade to
     4 # newer versions of the distribution.
     5 deb http://archive.ubuntu.com/ubuntu quantal main restricted
     6 deb-src http://archive.ubuntu.com/ubuntu quantal main restricted
     7
     8 ## Major bug fix updates produced after the final release of the
     9 ## distribution.
    10 deb http://archive.ubuntu.com/ubuntu quantal-updates main restricted
    11 deb-src http://archive.ubuntu.com/ubuntu quantal-updates main restricted
    12
    13 ## N.B. software from this repository is ENTIRELY UNSUPPORTED by the Ubuntu
    14 ## team. Also, please note that software in universe WILL NOT receive any
    15 ## review or updates from the Ubuntu security team.
    16 deb http://archive.ubuntu.com/ubuntu quantal universe
    17 deb-src http://archive.ubuntu.com/ubuntu quantal universe
    18 deb http://archive.ubuntu.com/ubuntu quantal-updates universe
    19 deb-src http://archive.ubuntu.com/ubuntu quantal-updates universe
    20
    21 ## N.B. software from this repository is ENTIRELY UNSUPPORTED by the Ubuntu
    22 ## team, and may not be under a free licence. Please satisfy yourself as to
    23 ## your rights to use the software. Also, please note that software in
    24 ## multiverse WILL NOT receive any review or updates from the Ubuntu
    25 ## security team.
    26 deb http://archive.ubuntu.com/ubuntu quantal multiverse
    27 deb-src http://archive.ubuntu.com/ubuntu quantal multiverse
    28 deb http://archive.ubuntu.com/ubuntu quantal-updates multiverse
    29 deb-src http://archive.ubuntu.com/ubuntu quantal-updates multiverse
    30
    31 ## N.B. software from this repository may not have been tested as
    32 ## extensively as that contained in the main release, although it includes
    33 ## newer versions of some applications which may provide useful features.
    34 ## Also, please note that software in backports WILL NOT receive any review
    35 ## or updates from the Ubuntu security team.
    36 deb http://archive.ubuntu.com/ubuntu quantal-backports main restricted universe multiverse
    37 deb-src http://archive.ubuntu.com/ubuntu quantal-backports main restricted universe multiverse
    38
    39 deb http://archive.ubuntu.com/ubuntu quantal-security main restricted
    40 deb-src http://archive.ubuntu.com/ubuntu quantal-security main restricted
    41 deb http://archive.ubuntu.com/ubuntu quantal-security universe
    42 deb-src http://archive.ubuntu.com/ubuntu quantal-security universe
    43 deb http://archive.ubuntu.com/ubuntu quantal-security multiverse
    44 deb-src http://archive.ubuntu.com/ubuntu quantal-security multiverse
    45
    46 ## Uncomment the following two lines to add software from Canonical's
    47 ## 'partner' repository.
    48 ## This software is not part of Ubuntu, but is offered by Canonical and the
    49 ## respective vendors as a service to Ubuntu users.
    50 # deb http://archive.canonical.com/ubuntu quantal partner
    51 # deb-src http://archive.canonical.com/ubuntu quantal partner
    52
    53 ## This software is not part of Ubuntu, but is offered by third-party
    54 ## developers who want to ship their latest software.
    55 # deb http://extras.ubuntu.com/ubuntu quantal main
    56 # deb-src http://extras.ubuntu.com/ubuntu quantal main
eddie@eddie-To-be-filled-by-O-E-M:~$