Setting up Auto Login in Raspberry pi Running Raspbian

Auto Login:
Edit /etc/inittab

Scroll down to:

and change to

Under that line add:

save the file and exit, (ctrl + o to save and ctrl + x to exit)

Auto StartX (Run LXDE)
Edit /etc/rc.local

Scroll to the bottom and add the following above exit 0:

(where pi is the username you want to run X as).
Reboot the machine.