I have the same problem and I also updated xcdroast right before that happened. It was only one of the numerous updates I did though, so I'm not sure if it's THE one...
"startx" won't work either, I still get the "$DISPLAY not set" error message, amongst others.
I tried reconfiguring with xf86config to no avail...
Please help me get back into my system!
Any help is welcome!!!