so i reinstalled using ext3 this time - rebooted 4 times without problem - then 
i installed thunderbird,  aptitude removed mbr{u} 
i rebooted successfully once then on second reboot problem came back

what is this mbr{u}  - i wonder is this something to do with it

-- 
system hang on "starting init crypto disks [OK]"
https://bugs.launchpad.net/bugs/485858
You received this bug notification because you are a member of puredyne
team, which is the registrant for puredyne-kernel.

Status in Puredyne kernel: Confirmed
Status in Puredyne liveCD/DVD/USB/HD: Incomplete

Bug description:
this has been duplicated on two T43s and i also observed this in some machines 
in access space...
i made a fresh install with automatically log in user and an ext4 partition - i 
was able to log in sometimes but mostly it hangs on
"starting init crypto disks [OK]"
seems erratic - i installed my x41 exactly the same way and have had no problems
i also after install tried a aptitude safe-upgrade but that didn't help

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