I further examined this problem. It's related to this reported regression on 
lkml:
http://marc.info/?t=123139972800002&r=1&w=2

As a consequence, if CONFIG_MMC is disabled in 2.6.29-rc3, the problem
vanishs and jaunty boots correctly.

-- 
hald segfaults on kernel 2.6.29-rc
https://bugs.launchpad.net/bugs/322649
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