I have done more testing and learned much.
Setting kernel option
    hpet=disable 
works around the problem.

Also, if you hit the power switch to create an interrupt, oh say about
40 times, you can get the bootstrap to the point where it sees the
keyboard.  At that point you can generate interrupts with the keyboard
to the point where gdm starts, and sees the mouse.

After that, unless YOU create interrupts, the system sees no clock interrupts, 
and
does nothing.  It's fun to type "ls<enter>" and have it produce no output till 
you move the mouse, or hit the ctrl key.

-- 
Jaunty will not boot on Dell Optiplex 760 unless acpi=off
https://bugs.launchpad.net/bugs/348694
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