Public bug reported:

When installing with the Ubuntu LiveCD, after the initial installation
and the reboot. I get a "Kernel Panic" error.

Eventually, I discovered a post that if "/etc" is installed on a
separate partition, the "Kernel Panic" will occur.  On my system, I had
/etc, /var/,  and /usr on separate partitions.  I consolidated all of
them to same partition as root.  Thereafter the installation proceeded
without incident.

Here are the posts for reference:
http://ubuntuforums.org/archive/index.php/t-684613.html
http://ubuntuforums.org/showthread.php?p=4451980&mode=linear#post4451980

** Affects: ubuntu
     Importance: Undecided
         Status: New

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Gutsy install freezes on reboot
https://bugs.launchpad.net/bugs/198746
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