Faulty desktop/init 5

I'm dual booting Suse and Trisquel. Trisquel was working fine the last time I checked it. I don't remember if it did some type of update.

I just booted in trisquel and the desktop is broken. I get the default desktop background and I see the cursor; which moves. But, I don't have a taskbar and there's no right click.

When I press CTRL+SHIFT+ALT+F1 (tty1) I get the following:
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root (hd0,1)
Filesystem type is ext2fs, partition type 0x83
kernel /boot/vmlinuz-2.6.28-18-generic root=/dev/sda2 ro quiet splash
[Linux-bzImage, setup 0x3000, size 0x3514d0]
initrd /boot/initrd.img-2.6.28-18-generic
[Linux-initrd @ 0x37855000, 0x79ad00 bytes]

Loading, please wait...
19+0 records in
19+0 records out
kinit:name_to_dev_t(/dev/disk/by-uuid/3ac12439-4fc1-444e-9657-b954f5dc4e74) = dev(8,3)
kinit: trying to resume from /dev/disk/by-uuid/3ac12439-4fc1-44e-9657-b954f5dc4e74
kinit: No resume image, doing normal boot...

Trisquel GNU/Linux 3.0 bitslip tty1

bitslip login: _
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From here I can log-in. Here's what I know so far....
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psyber@bitslip:~$ ps -ef |grep X
root 2991 2988 0 15:05 tty7 00:00:11 /user/bin/X :0 -br -audit 0 -auth /var/lib/gdm/:0.Xauth -nolisten tcp vt7
psyber 3717 3707 0 15:34 tty1 00:00:00 grep X

psyber@bitslip:~$ runlevel
N 2
psyber@bitslip:~$ init 5
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After that I switched back to tty7 and nothing changed. Switched back to tty1

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psyber@bitslip:~$ sudo /bin/sh
[sudo] password for psyber: _
# killall gdm
# /etc/init.d/gdm start
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Here I get kicked back to tty7 and still nochange. Switched back to tty1. Switch to tty8 looks like everything started okay. The last line is "Setting up console font and keymap..."; which is also "[OK]".