Try using clocksource=jiffies instead of acpi=off: it may get the shutdown to 
work properly.
If you don't want to type your boot options manually every time you have to 
edit the file /etc/grub/menu.lst.
If you have other questions that are not strictly related to this bug, please 
ask them on Ubuntu forums instead of Launchpad.

-- 
Impossible restart after updating Ubuntu 7.04 to 7.10
https://bugs.launchpad.net/bugs/178896
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