Upgraded KDE and it can't connect to X server

[Darren Marsh <djmarsh@bigpond.net.au>]

Hi,

I have been using KDE for a while with a problem where the first time 
kdm is started I would get a message like this in the 
/var/log/XFree86.0.log:

AUDIT: Fri Apr 13 12:33:28 2001: 1030 X: client 2 rejected from local host
 Auth name: XDM-AUTHORIZATION-1 ID: -1

I would see the kdm login box but the wallpaper wouldn't be displayed 
and I would be unable to login. I would get messages like this in the 
users .xsession-errors file:

Xlib: connection to ":0.0" refused by server
Xlib: Client is not authorized to connect to Server
xrdb: Can't open display ':0'
.
.
.
Xlib: connection to ":0.0" refused by server
Xlib: Client is not authorized to connect to Server
ksmserver: cannot connect to X server :0
kdeinit: Fatal IO error: client killed

so I would restart X (Ctrl+Alt+Backspace) and after that everything 
would work properly. But this was starting to annoy me so I upgraded to 
the latest (2.1.1-Potato4) packages and the restart X trick no longer 
works so I can't run KDE at all.

I'm using Debian 2.2 updated from the Testing tree with X4.0.2 etc and 
the latest KDE version.

So, why has this happened and how do I correct it.

Thanks,
Darren