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I had trouble with Gnome desktop after upgrading from 11.0 to 11.1
Solution was to remove pkg SUNWvboxguest.
After suggessful remove I could re-run pkg upgrade.
Check/paste /var/log/Xorg.0.log that might give some hints...
I got eg. this error; but NOW its working...:)
Nov 15 20:18:59 dagobert11 gdm-binary: [ID 702911 daemon.warning] WARNING: GdmDisplay: Display /org/gnome/DisplayManager/Display1 failed 5 times in 18.000000 seconds, no longer managing display