This bug is fixed for me after today's kernel update:
https://lists.ubuntu.com/archives/jaunty-changes/2009-March/007996.html
It may be fixed with this change:
* Build-in "Ram block device support" to boot up with initramfs
- LP: #329098
Note: above bug ID is probably wrong.
daveskis: can you test today's updates and if this fixes it also for you
and can we close it?
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Borked installation of latest updates in jaunty, now kernel panic on boot
https://bugs.launchpad.net/bugs/339423
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