gdm hangs shortly after login, startx works (v. 9.10)

This is a "wubi" install. If I start ubuntu and log in using gdm, it hangs shortly after I log in. It hangs so bad, I can't reset the machine any other way than a hard boot.

However, if i go in using recovery mode and then run startx ... everything works great. I can browse the web, play videos, etc. In all other respects, the machine works so much better now then when it was running Winslows, I refuse to give up on this issue.

What is gdm doing that startx isn't that can possibly cause the system to hang so completely?

Knowing that startx works well, I might be able to selectively test each other aspect of gdm to determine which is hanging the system.

>uname -a
Linux ubuntu 2.6.31-17-generic #54-Ubuntu SMP Thu Dec 10 17:01:44 UTC 2009 x86_64 GNU/L

>lsmod
Module Size Used by
binfmt_misc 10220 1
joydev 13088 0
ppdev 8232 0
snd_hda_codec_realtek 277860 1
iptable_filter 3872 0
ip_tables 21200 1 iptable_filter
x_tables 25832 1 ip_tables
snd_hda_intel 31880 0
snd_hda_codec 87584 2 snd_hda_codec_realtek,snd_hda_intel
snd_hwdep 9352 1 snd_hda_codec
snd_pcm_oss 44704 0
snd_mixer_oss 18976 1 snd_pcm_oss
snd_pcm 93160 3 snd_hda_intel,snd_hda_codec,snd_pcm_oss
snd_seq_dummy 3460 0
snd_seq_oss 33440 0
snd_seq_midi 8192 0
snd_rawmidi 27360 1 snd_seq_midi
snd_seq_midi_event 8448 2 snd_seq_oss,snd_seq_midi
snd_seq 60608 6 snd_seq_dummy,snd_seq_oss,snd_seq_midi,snd_seq_midi_event
psmouse 57124 0
serio_raw 6596 0
lp 11908 0
parport 40528 2 ppdev,lp
snd_timer 26992 2 snd_pcm,snd_seq
snd_seq_device 8308 5 snd_seq_dummy,snd_seq_oss,snd_seq_midi,snd_rawmidi,snd_seq
snd 77096 12 snd_hda_codec_realtek,snd_hda_intel,snd_hda_codec,snd_hwdep,snd_pcm_oss,snd_mixer_oss,snd_pcm,snd_seq_oss,snd_rawmidi,snd_seq,snd_timer,snd_seq_
device
soundcore 9088 1 snd
snd_page_alloc 10928 2 snd_hda_intel,snd_pcm
usbhid 43968 0
fbcon 41344 71
tileblit 3136 1 fbcon
font 8832 1 fbcon
bitblit 6688 1 fbcon
softcursor 2336 1 bitblit
r8169 38884 0
mii 6368 1 r8169
i915 247304 2
drm 193856 2 i915
i2c_algo_bit 7076 1 i915
video 23612 1 i915
output 3680 1 video
intel_agp 32816 2 i915

>lscpu
Architecture: x86_64
CPU(s): 1
Thread(s) per core: 1
Core(s) per socket: 1
CPU socket(s): 1
NUMA node(s): 1
Vendor ID: GenuineIntel
CPU family: 15
Model: 6
Stepping: 5
CPU MHz: 3466.598
L1d cache: 16K
L2 cache: 512K