Many thanks to hoagies, gmerrick and hop0 for the suggestions.  I knew I
had a lot of research to do before I could even comprehend what was
being said (I'm an old guy who is barely literate in computers), so I
took the easy way out.  I again downloaded the desktop verison of 7.04,
burned an ISO CD and installed it on the Western Digital external hard
drive (USB connection).  Even though I know the definition of insanity
is repeating the same process and expecting different results, it
appears that at least this one time, it may have worked.

In all previous installations of of 7.04 and 6.06 the system never
displayed the boot options at start-up, now when the machine is powered
up, the several boot options are displayed with Ubuntu Kernel
2.6.20-15-generic being the default which will boot unless I intervene
and select another.   Since this latest installation of 7.04 I must have
successfuly rebooted six or seven times...not once did I encounter the
dreaded /bin/sh: cant access....etc.  Fingers will remain crossed for
quite a while, but so far so good.

I wish I could add some insight that would be helpful to people who
continue to have trouble with this particular bug, but, even if it was
me (and not software or hardware) doing something wrong, I don't know
what it could have been.

Thanks again to all and good luck!

-- 
boot - /bin/sh: can't access tty; job control turned off
https://bugs.launchpad.net/bugs/96084
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Bugs, which is the bug contact for Ubuntu.

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