Reassigning to casper. This doesn't look like a kernel problem, probably just a 
configuration problem.
You might find it useful to do a google search such as "ubuntu laptop freezes 
at running local boot scripts"
and have a look around the forums at ubuntuforums.org

When you get to the stage of the screenshot taken below could you run the 
following commands ond post the output files here:
You may need to plug in a USB device (should auto-mount under /media/*)
- dmesg > dmesg.log (cp ~/dmesg.log /media/usb_key)
- sudo lspci -vvnn > lspci-vvnn.log (cp ~/lspci-wnn.log /media/usb_key)
-  cat /var/log/Xorg.0.log > Xorg.log (cp ~/Xorg.log /media/usb_key)
You may also try running:
sudo dpkg-reconfigure xserver-xorg 
sudo /etc/init.d/gdm restart

** Changed in: casper (Ubuntu)
Sourcepackagename: None => casper

-- 
Ubuntu 7.10 Gutsy doesn' t run on MiTAC laptops
https://bugs.launchpad.net/bugs/158999
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