After having done some research I'm now sure that this hang is due to
the acx wireless driver and the fact that it does not support WPA.  I
can use NetworkManager if I blacklist this driver in
/etc/modprobe.d/blacklist and use a wired connection instead.

The worrying thing for Ubuntu is that this bug exists on the release
candidate CD, the CD will not start at all if an acx111 based wireless
card is present on the system.  This would obviously preclude a number
of users from installing and trying Intrepid.

There are two ways to fix this issue, either blacklist the acx driver by
default, or if the acx driver is present disable NetworkManager.

In the long term the acx driver needs to add support for WPA, but I
can't tell if the project is still being worked on.  In the absence of
any update to this driver NetworkManager should not enable WPA support
by default for acx111 based cards.

I would hope that resolving this issue would be a priority for the
Ubuntu team as it would put off new users from converting to Linux and
will leave current users unable to upgrade.

I look forward to hearing your response to these comments.

-- 
[intrepid] NetworkManager 0.7 hangs system
https://bugs.launchpad.net/bugs/279287
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