Here’s another strike against LXDM: Ubiquity, Ubuntu’s installer, doesn’t play nice with it with Wubi.
Wubi basically copies the ISO to the hard drive and then boots a custom grub boot that feeds ubiquity a preseed set of instructions on how to install into the Wubi-created loopback device. Unfortunately, this only works with a handful of Linux display managers. We had to dump lxdm for gdm in the labs, as lxdm can’t deal with NIS accounts. Now we have had to dump it on the Live CD as well. It’s too bad, too, as I’m not a GDM 2.30 fan at all.