After a long of tests we have identified that the problem resuted frou mountall 
failing to mount the following entry from /etc/fstab:
none /proc/bus/usb usbfs devgid=127,devmode=664 0 0

Please note that this will affect all users which have followed:
https://help.ubuntu.com/community/VirtualBox/USB


** Summary changed:

- Upgrading from 9.10 to 10.04 on Dell Inspiron 6400 makes the system unbootable
+ Upgrading with legacy virtualbox usb support renders the system unbootable

** Package changed: ubuntu => mountall (Ubuntu)

-- 
Upgrading with legacy virtualbox usb support renders the system unbootable
https://bugs.launchpad.net/bugs/565109
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