This bug or similar affects me. Installed from ubuntu-12.04-beta1
-desktop-amd64.iso downloaded 3/3/2012.

Adding --no-log to grub :  startup logs on screen to about point that "
init: no available ptys " message looped and then hangs ( I presume the
" no log" is effective, but not producing progress in startup.)

The /boot/grub/ directory has only a blacklist file, otherwise empty. Is
this because it has not yet been set up for initrm?

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https://bugs.launchpad.net/bugs/936667

Title:
  Upstart early job logging causes boot failure for systems with no
  initramfs (error is "No available ptys")

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