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[Andrew <andrew.rw.robinson@xxxxxxxxx>]

*** This bug is a duplicate of bug 475090 ***
    https://bugs.launchpad.net/bugs/475090

Found the problem, gdm's xsession script does not set the required
xsession variables for that script

Workaround, create a $HOME/.xprofile with this line:
USERXSESSIONRC=$HOME/.xsessionrc


** This bug has been marked a duplicate of bug 475090
   Karmic /etc/gdm/Xsession fails to source ~/.xsessionrc or apply ~/.Xresources

-- 
xsessionrc is not sourced during gnome login
https://bugs.launchpad.net/bugs/475529
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