I was affected by this bug. Pressing Enter at any time forward from the
login screen froze the system. No Ubuntu logo was visible during the
boot, but there was a blue and white progress bar at the bottom of the
screen.

Removing plymouth fixed the bug (removed it in Synaptic, not in safe mode)
- reinstalling plymouth brought the problem back
- removed plymouth again, and the bug is now gone
(removing plymouth made the system freeze at shut down - had to reset)

System:
Ubuntu Lucid daily live of 13.2.2009
AMD 64 bit
Nvidia Geforce 8800 GT with binary driver

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Pressing <Enter> causes X to freeze
https://bugs.launchpad.net/bugs/516412
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