Follow-up Comment #2, bug #29940 (project grub):
I have seen a similar thing:
The attempt to boot Debian Sarge Linux Kernel vmlinuz-2.4.27-3-k7
causes the machine to re-start (same effect as pressing reset button). This
is on a machine with AMD Athlon XP1800 processor and a VIA KT400 chipset
motherboard.
Note that legacy grub successfully boots this kernel.
Also grub1.96+20080724-16 (Debian Lenny grub 2 package) boots this kernel.
It is grub-pc 1.98-1ubuntu5-1mint2 that won't boot
vmlinuz-2.4.27-3-k7 although it successfully boots various 2.6 series kernels
(for instance Linux Mint 9
kernel vmlinuz-2.6.32.23-generic).
Note also that the machine reset is independent of the initrd image. It
happens even without an initrd on vmlinuz-2.4.27-3-k7 whereas with 2.6
kernels, absence of initrd causes a kernel panic but no reset.
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