I'm having the same "Fail to initialize Hal" error in my Hardy 2.6.24-16.
I can boot up correctly with 2.6.22-14, but I lose my fglrx ogl libraries and 
my keryring daemon crashes (yet it still seems to work).
I've tried all the reconfiguring/reinitialize of hald and dbus, as well as 
messing with rc configs; still nothing.

After looking at some of my log files, the only error I can find in
concern to HAL comes when pulseaudio is first initializing. I'm not sure
if it's the cause, and I don't know how to stop it from starting to see
if it's the cause.

-- 
Failed to initalize HAL.
https://bugs.launchpad.net/bugs/25931
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