Ok after many tries I got this new puredyne install to boot.  Here's what 
eventually worked:

1/ Boot in recovery mode
2/ Wait for root prompt
3/ type: grub-mkconfig
4/ reboot

Maybe something is stopping the installation from completing fully?  Like this:
  https://bugs.launchpad.net/ubuntu/+source/update-notifier/+bug/30759

Though in this case I'd left it for hours and returned to find it
complete, so I don't think this is a problem...  But something could be
terminating early in the upgrade process.  Doesn't really make sense as
aymeric and others have fixed theirs by fiddling with the bios...

alex

-- 
system hang on "starting init crypto disks [OK]"
https://bugs.launchpad.net/bugs/485858
You received this bug notification because you are a member of puredyne
team, which is the registrant for puredyne-kernel.

Status in Puredyne kernel: Confirmed
Status in Puredyne liveCD/DVD/USB/HD: Confirmed

Bug description:
this has been duplicated on two T43s and i also observed this in some machines 
in access space...
i made a fresh install with automatically log in user and an ext4 partition - i 
was able to log in sometimes but mostly it hangs on
"starting init crypto disks [OK]"
seems erratic - i installed my x41 exactly the same way and have had no problems
i also after install tried a aptitude safe-upgrade but that didn't help



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