Alright, I notice that a lot of different chipsets/setups are causing
the same problem (and more).

When I read the note of Alan, I immediately think of kernel (module)
updates causing the problem, instead of a faulty bootdisk. I'm on
holidays the next two weeks, so I can't try this, but maybe someone else
could:

1- install Gutsy
2- check if everything works fine
3- update the kernel to the version included in Hardy
4- check if everything still works fine
5- update some other important stuff
6- check
7- repeat from 5...

Also, looking at the last kernel output when booting could reveal
something interesting (like dalesyk did: boot without splash and quiet
option, and note what displays last). Maybe it's possible to do a dmesg
in the BusyBox prompt?

Good luck, I'll be back.

-- 
initramfs error/problem ubuntu 8.04
https://bugs.launchpad.net/bugs/222176
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