Ran into this bug when doing a dist-upgrade from Edgy to Hardy (yes. 
directly!). Since I'm using KDE, I've moved /etc/rc[1-5].d/S13kdm to "S30kdm" 
and then rebooted my system - It's running fine now.
Maybe the S13 >> S30 wasn't even necessary...

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Failed to initalize HAL.
https://bugs.launchpad.net/bugs/25931
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