So glad to find this!!!  We have been struggling too.
To be clear:  Our 8.10-based Xubuntu machines do 
not do this.  They also had 'kexec-tools" installed
on them, and their /etc/default/kexec files have:

LOAD_KEXEC=0      # Now we know!!  Thank you, thank you

All makes sense now.  But finding it on the web was
not straightforward.   And because we did not at first realize
that our little embedded systems were not truly re-booting,
we had some real fun!    Thanks again for the help.   CD

-- 
reboot in jaunty doesn't restart from bios
https://bugs.launchpad.net/bugs/364889
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