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Actually it says: Found xorg version . Hardy runs Xorg 1.4.0.90 (prerelease). Gutsy runs Xorg 1.3.0. The problem is that the banner...
pkasin: Sounds like you are where I was this morning. Try removing gdm and using startx to get your X going.
Success (sort of) I'm having the X problem described by so many others. I wanted to experiment a bit, so I kept careful checkpoints as I went...