I am also stuck on this problem. I installed 10.04 LTS x64 in a basic (text 
mode) install on a VMWare vCenter virtual machine.
The initial machine works.
When I clone this machine, and boot the clone, the clone does not get working 
networking.
As part of trying to diagnose/fix this, I'm running into the same problem with 
cryptic error messages.

I *think* it has something to do with trying to run these commands while
something in networking is still trying to start in the background,
because waiting for five minutes and re-trying, I get another message
(about eth0 not being a recognized interface)

-- 
service fails to start/stop/restart networking daemon
https://bugs.launchpad.net/bugs/440179
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