/var/log/lightdm.log reports:
[+0.00s] DEBUG: Logging to /var/log/lightdm/lightdm.log
[+0.00s] DEBUG: Starting Light Display Manager 0.9.7, UID=0 PID=6405
[+0.00s] DEBUG: Loaded configuration from /etc/lightdm/lightdm.conf
[+0.00s] DEBUG: Using D-Bus name org.freedesktop.DisplayManager
[+0.00s] DEBUG: Using Xephyr for X servers
[+0.00s] DEBUG: Registered seat module xlocal
[+0.00s] DEBUG: Registered seat module xremote
[+0.00s] DEBUG: Adding default seat
[+0.00s] DEBUG: Starting seat
[+0.00s] DEBUG: Starting new display for greeter
[+0.00s] DEBUG: Starting local X display
[+0.00s] DEBUG: Could not run plymouth --ping: Failed to execute child process "plymouth" (No such file or directory)
[+0.00s] DEBUG: Using VT 7
[+0.00s] DEBUG: Activating VT 7
[+0.01s] DEBUG: Logging to /var/log/lightdm/:1.log
[+0.01s] DEBUG: Writing X server authority to /var/run/lightdm/root/:1
[+0.07s] DEBUG: Launching X Server
[+0.09s] DEBUG: Launching process 6411: DISPLAY=:0 XAUTHORITY=/root/.xauthH85rJA /usr/bin/Xephyr :1 -auth /var/run/lightdm/root/:1 -nolisten tcp vt7 -novtswitch
[+0.09s] DEBUG: Waiting for ready signal from X server :1
[+0.09s] DEBUG: Acquired bus name
[+0.09s] DEBUG: Registering seat with bus path /org/freedesktop/DisplayManager/Seat0
and /var/log/:1.log reports
Unrecognized option: -novtswitch
use: X [:<display>] [option]
-a # default pointer acceleration (factor)
-ac disable access control restrictions
-audit int set audit trail level
-auth file select authorization file
-br create root window with black background
+bs enable any backing store support
-bs disable any backing store support
-c turns off key-click
c # key-click volume (0-100)
-cc int default color visual class
-nocursor disable the cursor
-core generate core dump on fatal error
-dpi int screen resolution in dots per inch
-dpms disables VESA DPMS monitor control
-deferglyphs [none|all|16] defer loading of [no|all|16-bit] glyphs
-f # bell base (0-100)
-fc string cursor font
-fn string default font name
-fp string default font path
-help prints message with these options
-I ignore all remaining arguments
-ld int limit data space to N Kb
-lf int limit number of open files to N
-ls int limit stack space to N Kb
-nolock disable the locking mechanism
-nolisten string don't listen on protocol
-noreset don't reset after last client exists
-background [none] create root window with no background
-reset reset after last client exists
-p # screen-saver pattern duration (minutes)
-pn accept failure to listen on all ports
-nopn reject failure to listen on all ports
-r turns off auto-repeat
r turns on auto-repeat
-render [default|mono|gray|color] set render color alloc policy
-retro start with classic stipple and cursor
-s # screen-saver timeout (minutes)
-t # default pointer threshold (pixels/t)
-terminate terminate at server reset
-to # connection time out
-tst disable testing extensions
ttyxx server started from init on /dev/ttyxx
v video blanking for screen-saver
-v screen-saver without video blanking
-wm WhenMapped default backing-store
-wr create root window with white background
-maxbigreqsize set maximal bigrequest size
+xinerama Enable XINERAMA extension
-xinerama Disable XINERAMA extension
-dumbSched Disable smart scheduling, enable old behavior
-schedInterval int Set scheduler interval in msec
-sigstop Enable SIGSTOP based startup
+extension name Enable extension
-extension name Disable extension
-query host-name contact named host for XDMCP
-broadcast broadcast for XDMCP
-multicast [addr [hops]] IPv6 multicast for XDMCP
-indirect host-name contact named host for indirect XDMCP
-port port-num UDP port number to send messages to
-from local-address specify the local address to connect from
-once Terminate server after one session
-class display-class specify display class to send in manage
-cookie xdm-auth-bits specify the magic cookie for XDMCP
-displayID display-id manufacturer display ID for request
[+-]accessx [ timeout [ timeout_mask [ feedback [ options_mask] ] ] ]
enable/disable accessx key sequences
-ardelay set XKB autorepeat delay
-arinterval set XKB autorepeat interval
TinyX Device Dependent Usage:
-screen WIDTH[/WIDTHMM]xHEIGHT[/HEIGHTMM][@ROTATION][X][Y][xDEPTH/BPP[xFREQ]] Specify screen characteristics
-rgba rgb/bgr/vrgb/vbgr/none Specify subpixel ordering for LCD panels
-mouse driver [,n,,options] Specify the pointer driver and its options (n is the number of buttons)
-keybd driver [,,options] Specify the keyboard driver and its options
-zaphod Disable cursor screen switching
-2button Emulate 3 button mouse
-3button Disable 3 button mouse emulation
-rawcoord Don't transform pointer coordinates on rotation
-dumb Disable hardware acceleration
-softCursor Force software cursor
-videoTest Start the server, pause momentarily and exit
-origin X,Y Locates the next screen in the the virtual screen (Xinerama)
-switchCmd Command to execute on vt switch
-zap Terminate server on Ctrl+Alt+Backspace
vtxx Use virtual terminal xx instead of the next available
Xephyr Option Usage:
-parent <XID> Use existing window as Xephyr root win
-host-cursor Re-use exisiting X host server cursor
-fullscreen Attempt to run Xephyr fullscreen
-grayscale Simulate 8bit grayscale
-fakexa Simulate acceleration using software rendering
-verbosity <level> Set log verbosity level
-nodri do not use DRI
-noxv do not use XV
-name [name] define the name in the WM_CLASS property
-title [title] set the window title in the WM_NAME property
Could you attach your lightdm.conf? I think you must be explicitly setting a VT.