The change that is causing this issue to occur is in upstart:

http://launchpadlibrarian.net/76962956/upstart_1.3-0ubuntu5_1.3-0ubuntu6.diff.gz

If I revert the change to rc-sysinit.conf the system boots fine - open-
iscsi is only run on IFACE lo which does an exit 0 so no iscsid is
tarted.

With this change in place iscsid runs for lo and eth0 which then results
in a large number of IO errors and general system mis-behaviour.

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https://bugs.launchpad.net/bugs/838809

Title:
  authenticated and unauthenicated iscsi clients fails to complete boot

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