diff -up gdm-2.26.1/daemon/gdm-session-direct.c.set-auth-flag gdm-2.26.1/daemon/gdm-session-direct.c

--- gdm-2.26.1/daemon/gdm-session-direct.c.set-auth-flag	2009-05-08 11:43:58.935662919 -0400

+++ gdm-2.26.1/daemon/gdm-session-direct.c	2009-05-08 11:46:46.785623788 -0400

@@ -380,6 +380,8 @@ gdm_session_direct_handle_authenticated 

         dbus_connection_send (conversation->worker_connection, reply, NULL);

         dbus_message_unref (reply);

+        session->priv->is_authenticated = TRUE;

+

         _gdm_session_authenticated (GDM_SESSION (session), conversation->service_name);

         return DBUS_HANDLER_RESULT_HANDLED;

@@ -407,6 +409,8 @@ gdm_session_direct_handle_authentication

         g_debug ("GdmSessionDirect: Emitting 'authentication-failed' signal");

+        session->priv->is_authenticated = FALSE;

+

         _gdm_session_authentication_failed (GDM_SESSION (session), conversation->service_name, NULL);

         return DBUS_HANDLER_RESULT_HANDLED;