it should, however removing the xorg.conf produces the same results.
here's my generated xorg.conf (Xorg sait configuration failed, but still spat it out):
http://pastebin.com/kqZ2MHKF
here's the log file:
http://pastebin.com/RVUrzMLv
here's the xorg.conf after i tried making some sense of it and editing it:
http://pastebin.com/nk0mgDBW
sadly, if i use the latter xorg.conf file, all i get is a blank screen instead of xdm. i suspect the problem is elsewhere, since it should work fine even without a config file.