I am being hit hard by this. After playing around with gconf, I cannot
boot anymore. The initial output showed that /bin/sh cannot be executed.
I booted with a Live CD and corrected the symlink for /bin/sh, which
linked to dash. After linking it to bash, I still have the following
output:

/etc/rcS.d/S20checkroot.sh: line 353: /lig/init/readlink: Permission denied
/etc/lsb-base-logging.sh: line 37: /sbin/usplash_write: Permission denied
* Cannot initiatlize /etc/mtab.
/etc/rcS.d/S20checkroot.sh: line 389: /bin/rm: Permission denied
init: Unable to execute "/bin/sh" for rc-default: Permission denied
init: rc-default process (3285) terminated with status 1

Any workarounds for this?

-- 
upstart utterly fails when /bin/sh symlink disappears
https://launchpad.net/bugs/65024

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