Comment 23 for bug 576359

Well, something I noticed with this ppa package is that it was getting the security wrong for the path:
/var/lib/nxserver/home and all the decending directories. They should be owned by the nx user or at least readable by the nx group.
When I ran the following command my login issues went away:
sudo chown nx:root -R /var/lib/nxserver/home

This makes the nx user the owner of those directories. It should be the owner because it is the active user at the nxserver shell that the login is performed with and that is the home directory for the nx user.