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Since Ubuntu 11.10 GDM is replaced by LightDM. The LightDM login screen background can be changed by using the following tool: Simple LightDM Manager.

How to install Simple LightDM Manager:
To install this tool, the following steps needs to be executed:
  • Open a terminal
  • Type the following command: sudo add-apt-repository ppa:claudiocn/slm
  • Press Enter and if required, type the password of the current user
  • Then type the following command: sudo apt-get update
  • When all the packages are updated, type the following command: sudo apt-get install simple-lightdm-manager

Simple LightDM Manager can be found by searching from Dash home. The tools is limited to changing the background image and the logo.