It looks like at least one, perhaps two different issues:

(1) usplash is getting lost, and hosing your terminal;
(2) X is failing to startup (or the system is being hit by a hard kernel panic).

So, please follow https://wiki.ubuntu.com/DebuggingKernelBoot "Boot
Options". I have copied & pasted it below:

When trying to capture relevant error messages that appear at boot it is
often useful to boot with the quiet and splash options removed. This
will hopefully allow you to see any messages that come across your
screen. To edit boot option parameters, do the following:

   1. Press 'Escape' key at the 3 second pause by Grub bootloader.
   2. Then press 'e' (edit) on the buggy kernel entry, followed by 'e' again on 
the kernel line.
   3.

      Then remove the splash and quiet keywords and press 'b' to boot.

It's best if you can attach a log file which may have captured any
messages you see. If you are unable to capture a log file, a digital
photo will work just as well. As a last resort you can even copy
messages down by hand.

-- 
Unable to boot system after updating to latest kernel 2.6.28-10-generic
https://bugs.launchpad.net/bugs/344615
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