I think we are all hit by bug 448981.

Iain Bucław has described a workaround in bug 448495 (a likely duplicate).
Does this workaround work for you:
sudo restart dbus
sudo start hal
sudo start gdm

My ubuntu boot stops in a console prompt. Yesterdays kubuntu boot
stopped at the graphical login screen with no mouse or keyboard.

I believe this is a regression and happened first with image 2009-10-10.
I do not see it with 2009-10-06. Can any of you try with 2009-10-09 or
-08?

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[karmic] live cd not work
https://bugs.launchpad.net/bugs/448142
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