The /etc/sysconfig/desktop file specifies the desktop for new users and the display manager to run when entering runlevel 5.
Correct values are:
DESKTOP="<value>", where "<value>" is one of the following:
GNOME — Selects the GNOME desktop environment.
KDE — Selects the KDE desktop environment.
DISPLAYMANAGER="<value>", where "<value>" is one of the following:
GNOME — Selects the GNOME Display Manager.
KDE — Selects the KDE Display Manager.
XDM — Selects the X Display Manager.
For more information, refer to Chapter 7, The X Window System.