Comment 3 for bug 518963

Yes, it's still an issue in Maverick. I'm experiencing it for several years already... The problem is not in encoding, it's keyboard layout (language?) switch that is not shown by the indicator.

My test case: 2 input languages, English and Russian, indicator (not indicator-applet, the GDM one) shows "USA" or "Рус" respectively.

Steps to reproduce:
1) Switch user
2) Logout from the other user or switch back
3) Observe "USA" layout indication
4) Try entering password; it doesn't match because the layout is Russian actually
5) Press Alt+Shift to change layout
6) Observe the indicator stay at "USA" state
7) Try entering password; it matches.

If I press Alt+Shift more times, changing keyboard layout works properly until the next user switch.
I can't guarantee that it happens always, but in many cases at least. I'm running into it all the time.