Caused by the fact that the rcS job is still running, reboot issues the
"shutdown" event but that won't actually complete until rcS and then rc2
have finished ... you'll probably find that the moment it hits gdm, it
starts shutting down again?

** Changed in: upstart (Ubuntu)
   Importance: Undecided => Low
     Assignee: (unassigned) => Scott James Remnant
       Status: Unconfirmed => Confirmed

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entering 'reboot' at the rescue console brings up gdm
https://launchpad.net/bugs/66002

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