Solaris - Gnome screen endless repitition (Eating up CPU)

I am a user of Open Solaris Nevada b64a, running it on LG Xnote R-500 series with Nvidia 8400 series on board.
Recently I have happened to come across an annoying error related to Gconfd(Gnome 2.16)

After entering the username and password, the login screen keeps on appearing. Other modes(such as failsafe modes, CDE login) works fine. However the JDS login did not work out, printing out an error message saying that it is unable to share any resources.

#sh NVIDIA....
#nvidia-xconfig ( this showed an "Segmentation fault" error, transitioning it to core dumping)

I managed to get it fixed by removing the NVIDIA pakage manually(pkgrm), then installing it again. This does not seems to be the proper way to troubleshoot however it works out fine.
I would be grateful to hear any better explanation of this phenonmenon.