I have hit this same problem when upgrading from 11.10 to 12.10.  The
box will no longer start. I have to go to recovery mode to even get SSH
up.

Is there any workaround?   Will upgrading or downgrading my kernel help?
3.5.0-18-generic #29-Ubuntu SMP Fri Oct 19 10:27:31 UTC 2012 i686 i686 i686 
GNU/Linux

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https://bugs.launchpad.net/bugs/706413

Title:
  update-initramfs hangs on adding gpu module

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