Gusty LTSP Auto Logon=Black Screen..no logon

Bug #164339 reported by bazz
This bug report is a duplicate of:  Bug #161794: autologin doesn't work. Edit Remove
2
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Ubuntu
New
Undecided
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Bug Description

If I set the lts.conf in /var/lib/tftpboot/ltsp/i386/lts.conf as:

[00:E0:81:27:D6:AE]
LDM_USERNAME=user
LDM_PASSWORD=password

The machine comes up and all I get is a black screen. It just hangs there and stays black and with an x for the cursor.
I can not find any errors, or anything. The is also no examples in the /opt/ltsp/i386/usr/share/doc/ltsp-client/examples

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