Stopping GDM:
/var/run/gdm.pid doesn't exist perhaps GDM isnt running?

if [ "$PREVLEVEL" = "3" -o "$PREVLEVEL" = "5" ]; then
	# Shutdown daemons
	let i=${#DAEMONS[@]}
	while [ $i -ge 0 ]; do
		if [ "${DAEMONS[$i]:0:1}" != '!' -a "${DAEMONS[$i]#@}" != "gdm" ]; then
			ck_daemon ${DAEMONS[$i]#@} || /etc/rc.d/${DAEMONS[$i]#@} stop
		fi
		let i=i-1
	done
	# find any leftover daemons and shut them down in reverse order
	if [ -d /var/run/daemons ]; then
		for daemon in $(ls -1t /var/run/daemons); do
				if [ "$daemon" != "gdm" ]; then
								/etc/rc.d/$daemon stop
				fi
		done
	fi
fi

## Only one of the following two lines can be uncommented!
# Boot to console
#id:3:initdefault:
# Boot to X11
id:5:initdefault:

# Example lines for starting a login manager
#x:5:respawn:/usr/bin/xdm -nodaemon
x:5:respawn:/usr/sbin/gdm -nodaemon
#x:5:respawn:/opt/kde/bin/kdm -nodaemon
#x:5:respawn:/usr/bin/slim >& /dev/null