I had the similar problem. The problem appeared after I had upgraded
from Ubuntu 7.10 to Ubuntu 8.04 (64bit, Intel Core-Duo) via the update
manager. The system worked more or less fine for a couple of weeks. One
of the glitches was that it took a 10-20 seconds after login to
recognize the network connection.

The problem became serious after I ha inserted a data DVD in the DVD
drive. The DVD drive on my machine (Dell Optiplex 745) never worked
correctly under Ubuntu 7.10. I had to change the BIOS setting at every
fresh bootup of Ubuntu to be able to open it and insert a CD/DVD. This
is probably an issue of Dell, not of Ubuntu. However, after having
inserted the data DVD, it first displayed the contents. At a 2nd trial,
it refused to display anything. Only the DVD was spinning for a few
seconds. That was the point of time after which I could not boot without
the message 'Failed to initialize HAL'. The problems spread over the
days to other functions such as access to USB memory sticks. Later, I
was no longer able to shutdown (system froze after pressing the power-
off icon on the upper right corner of the Gnome display). Fiinally, I
was no able to start Gnome (gdm). Only the recovery mode saved me from
loosing the PC.

The problem vanished after executing

   sudo mv /etc/rc.d/13gdm /etc/rc.d/30gdm

as advised above.

-- 
Failed to initalize HAL.
https://bugs.launchpad.net/bugs/25931
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