--- xfce4-session/xfsm-manager.c
+++ xfce4-session/xfsm-manager.c
@@ -454,7 +454,9 @@
         return;
     }

-  startup_done = xfsm_startup_continue (previous_id);
+  startup_done = FALSE;
+  while (!startup_done)
+    startup_done = xfsm_startup_continue (previous_id);

   if (startup_done)
     {
--- xfce4-session/xfsm-startup.c
+++ xfce4-session/xfsm-startup.c
@@ -374,7 +374,7 @@
           terminal = xfce_rc_read_bool_entry (rc, "Terminal", FALSE);

           /* try to launch the command */
-          if (!xfce_exec (exec, terminal, startup_notify, &error))
+          if (!xfce_exec (exec, terminal, 0, &error))
             {
               g_warning ("Unable to launch \"%s\" (specified by %s): %s", exec, files[n], error->message);
               g_error_free (error);