I have a similar issue, which may be a duplicate:
https://bugs.launchpad.net/ubuntu/+bug/775899

The options "ro acpi=off nosplash text" can consistently get me booted
to a terminal. Then from the terminal "sudo service start gdm" gets to
the gdm logon screen. On the logon screen I must choose "classic (no
effects)" and then I can get to gnome.

Would you mind seeing if adding acpi=off allows you to boot in 2.6.38-8?

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https://bugs.launchpad.net/bugs/734923

Title:
  System fails to boot

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