Confirmed. My Ubuntu test box consists of all md devices and was unbootable 
after the upgrade until I used the label trick. For those looking for direction:
1) Boot back up on a usable kernel. Due to the horrible bug with 
update-initramfs wiping the old initrd images, you may need to boot from CD and 
copy one of the '.dpkg-bak' versions to be able to boot at all.
2) Relabel your root filesystem. Mine had a label, but it was '/' which cannot 
be represented in the /dev/disk/by-label directory. "e2label /dev/md0 root" 
gave it a usable tag
3) Edit /etc/fstab and change the /dev/md0 to LABEL=root
4) Edit /boot/grub/menu.lst and copy and uncomment they kopt line to
kopt=LABEL=root ro
and also change the stanza(s) for the 2.6.20-* kernel(s) so that the root= 
specifier points to root=LABEL=root
5) Reboot and you should have a working system again.

-- 
initramfs scripts kill initial "coldplug" udev processing before devices needed 
for root filesystem are loaded
https://launchpad.net/bugs/89366

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