FC2 - GUI logout freezes machine

[Jeffrey B. Murphy]

If I log in to either GNOME/KDE/FailSafe as any user or root. Whenever 
I logout of the machine, it freezes the whole machine. I had FC1 on the 
same machine with no problems.
Dell optiplex GX240. This is a fresh install. SSH into the box works 
fine.

Any Ideas?

It never gets back to the login screen.

erased and re-installed a second time. same problem.

help!
Thanks.