I am trying to make Ubuntu run in text mode only as I want to use it as local server. I searched and found that I should edit /etc/default/grub and replace quiet splash with text then run update-grub, but nothing happens. Any suggestions?

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So, simply run the following in your terminal

echo 'manual' | sudo tee /etc/init/lightdm.override
sudo update-grub

Ref. to the following topic, Ubuntu 11.10 is using lightdm not gdm :

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