Public bug reported:

Binary package hint: upstart

Upstart seems to not run linux-restricted-modules-common. Maybe it fails. No 
idea. However modules/*/volatile is not mounted, the nvidia modules don't load 
and thus my X server doesn't start.
When I run the init script manually and load the nvidia, X runs fine.

kernel 2.6.17-6-k7
upstart  0.2.1-5
upstart-compat-sysv 0.2.1-5

** Affects: upstart (Ubuntu)
     Importance: Medium
     Assignee: Scott James Remnant
         Status: Needs Info

-- 
Fails to mount modules/*/volatile
https://launchpad.net/bugs/59277

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