I have the same problem on Hardy 8.04 Alpha-3.   Alpha-3 has been
working until now.  The Alpha-3 system has been broken by some new
update, as described above.  I get the same error message about
"internal error" saying "Failed to initialize HAL!"  The logout button
is not working and network icon indicates error (!).   I can do ctrl-
alt-backspace to kill x-server, which returns to login screen, from
which I can shutdown.   This is on a desktop i386 (Celeron) system, so
it's not limited to notebook computers.  (Dov-El's Dell Inspiron 1501 is
a notebook.)   Returning the system to Gutsy 7.10 by swapping out the
primary hard drive, I can boot 7.10 and it runs fine.

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hal fails to initialize in hardy alpha 3 after upgrade
https://bugs.launchpad.net/bugs/184410
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