I ran into the same problem when I upgraded from the stock Ubuntu 2.6.15-xxx kernel to a 'custom' 2.6.17.7 kernel. My goal was to get Suspend2 working. Actually, I ran into this problem while trying to get usplash to work. Turns out that the ATI framebuffer drivers were causing problems.
With these removed: CONFIG_FB_AT CONFIG_FB_ATY_CT CONFIG_FB_ATY_GENERIC_LCD The system reboots just fine now. Now, it would be nice to get the higher resolution console that the ATI drivers provide, but for now I'll enjoy being able to suspend and reboot. My system is a Compaq Armada M700 with a Mach64 based video setup. This ATI hardware has been nothing but trouble and disappointment. -- Power down after shutdown does not work... https://launchpad.net/bugs/43961 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
