First, I have no clue about nvidia and ati stuffs and closed source stuffs in general.
Now looking at your output, the problem that we have is as expected we don't have the timing, so I don't know where is the delay!? From the tail -f console you could see where it hangs. Do that.
Do you run startx as root? Not good! Dangerous and useless. You've probably seen this posted everywhere, I'm lazy today I won't explain the risks, just an advice. It's not because oldflashioned linux beared people are annoying, it's simply that it's dangerous and useless. Argg I said I shouldn't explain why and am falling in the trap again

"Friends don't let friends run as root"
Things to look:
1)
Try as non root, could be your problem (although unlikely). If it doesn't work as non root, then it's another problem.
2)
hostname: Host name lookup failure
Humm not good.
Try this on a command line and if it doesn't work, fix it.
3) I have no clue what's this wmnd is, looks like it uses the network. Could create a delay problem if it doesn't connect or like in 2) doesn't detect the DNS name (if it tries to access your DNS and asks for what's the name of 127.0.0.1, nobody appart from you will answer)
Quote:
#
wmnd [linux_proc]: detected sit0
#
wmnd [linux_proc]: detected eth0
#
wmnd [testing_dummy]: detected off
#
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4) I guess here you hit ctrl-alt-backspace:
Quote:
XIO: fatal IO error 104 (Connection reset by peer) on X server ":0.0"
#
after 135 requests (132 known processed) with 1 events remaining.
#
XIO: fatal IO error 104 (Connection reset by peer) on X server ":0.0"
#
after 135 requests (132 known processed) with 1 events remaining.
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Sorry I don't have so much time at the moment, but these are some ideas that should be looked at.