No problem
-- change this:
c1:1235:respawn:/sbin/agetty 38400 tty1 linux
to this:
c1:12345:respawn:/sbin/agetty 38400 tty1 linux
and THEN, go back to the top of this thread, and retry the suggestions we gave as to how yto start a (new) x session (either as yourself, or as a different user)