Try disconnecting all USB devices and see if you can boot. I got a
blinking cursor as well after an upgrade, but in my case it seems to be
a problem with Grubs UHCI driver. If I connect my keyboard to a port
driven by a OHCI controller grub starts normally.

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Dell inspiron mini 1010 (Atom Z530 1Gb RAM) won't boot after installing Ubuntu
https://bugs.launchpad.net/bugs/641161
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