The error you mention isn't really an error...That's a normal exit state
for ureadahead-other, but it's init / upstart fault you're seeing that
"error".

See following bugs:
Bug #484677 (where there is explained that it's normal behavior)
Bug #522197 (where there is a bug running against upstart for displaying it 
faulty)

So basically your system boots correctly and without errors if use the
work-around of adding "nomodeset" as boot-option.

So the issue is that you have to apply the work-around to get your
system running. How and why, I don't know, that's for someone else with
more knowledge. :)

-- 
Fuzzy startup screen lucid LiveCD Beta 1 
https://bugs.launchpad.net/bugs/545470
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