Did you check that die file owner and permissions are correct on the root filesystem? Especially the init script to by able to start the second boot stage:
# ls -l /sbin/init -rwxr-xr-x 1 root root 167192 Jan 18 2013 /sbin/init -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/430272 Title: karmic boot hung after /scripts/init-bottom To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/upstart/+bug/430272/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs