Are you folks running custom kernels? I'm seeing the same thing, but
only when I boot my stock 2.6.31.3 downloaded from kernel.org and built
without any modules. If I use the Ubuntu kernel, the install boots
normally -- which is to say, slower. But it does boot. With my
kernel.org kernel, it hangs not long after mountall rears its ugly head.
Started at about the same time others began seeing problems.

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karmic - mountall fails to mount filesystem on boot
https://bugs.launchpad.net/bugs/447747
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