I'm also getting:

mkdir: cannot create directory
'/lib/modules/2.6.26-4-generic/volatile/':read only file system

Also when it states Setting up Networking - it will wait for about a
minute or until I press any key before continuing to boot.

-- 
[Intrepid] GRUB Boot mkdir / rm permission problems
https://bugs.launchpad.net/bugs/250189
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