xstartup does not load gnome-session after 13.10 upgrade

After upgrading to 13.10, TightVNC does not load gnome session - it just shows a terminal window, with no session.

This is my ~/.vnc/xstartup

#!/bin/sh

# Uncomment the following two lines for normal desktop:
 unset SESSION_MANAGER
 unset DBUS_SESSION_BUS_ADDRESS
# exec /etc/X11/xinit/xinitrc
  gnome-session --session=gnome-fallback.desktop &
# gnome-session --session=gdm-session &

[ -x /etc/vnc/xstartup ] && exec /etc/vnc/xstartup
[ -r $HOME/.Xresources ] && xrdb $HOME/.Xresources
xsetroot -solid grey
vncconfig -iconic &
x-terminal-emulator -geometry 80x24+10+10 -ls -title "$VNCDESKTOP Desktop" &
x-window-manager &

This is the xtightvnc log:
21/10/13 11:16:26 Xvnc version TightVNC-1.3.10
21/10/13 11:16:26 Copyright (C) 2000-2009 TightVNC Group
21/10/13 11:16:26 Copyright (C) 1999 AT&T Laboratories Cambridge
21/10/13 11:16:26 All Rights Reserved.
21/10/13 11:16:26 See http://www.tightvnc.com/ for information on TightVNC
21/10/13 11:16:26 Desktop name 'X' (JWMC2:1)
21/10/13 11:16:26 Protocol versions supported: 3.3, 3.7, 3.8, 3.7t, 3.8t
21/10/13 11:16:26 Listening for VNC connections on TCP port 5901
21/10/13 11:16:26 Listening for HTTP connections on TCP port 5801
21/10/13 11:16:26 URL http://JWMC2:5801
No VNC extension on display :1
Option "--login" is no longer supported in this version of gnome-terminal; you might want to create a profile with the desired setting, and use the new '--profile' option
Xlib: extension "RANDR" missing on display ":1".
Window manager warning: Log level 32: could not find XKB extension.
gnome-session-is-accelerated: No composite extension.
gnome-session-check-accelerated: Helper exited with code 256

Use of other xstartup scripts results in either a solid grey scrren or a checkered type grey screen, but have not been successful in loading any gnome-sessions.