Seems to work for me too so far !!!
1- Uninstall 1.7 driver
2- Install OS X 10.8 over 10.7
3- Upgrade to OS X 10.8.2
4- Install 1.8 driver
No login behavior anymore
No corrupted applications
Only background did not saved properly.... but it is not a big deal !!
Thanks to .......... A P P L E