Hey,
I have exactly this issue in ubuntu 10.10 and even after adding intel_iommu=on 
, it is getting stuck at black screen with a cursor.
Disabling VT works fine. Please help.

And what is the difference between disabling VT and enabling it?

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https://bugs.launchpad.net/bugs/742296

Title:
  VT issue: "DMAR : unsupported device scope"

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