As in this bug: https://bugs.launchpad.net/linux/+bug/332772
removing "splash" from grub, and adding "vga=791", fixes the problem on the 
current Jaunty kernel: 2.6.28-11-generic.

** Description changed:

  When attempting to shutdown, or reboot process gets stuck on an
  otherwise blank screen with the words "*System will now halt." or
  "*System will now restart".
  
  On Jaunty Beta up to date.
  
  Fix: upgraded kernel to 2.6.29 All issues fixed.
  
  Running on Dell Inspiron 1525
  
   dpkg -l |grep linux-image
  ii  linux-image-2.6.28-11-generic              2.6.28-11.38    Linux kernel 
image for version 2.6.28 on x86
  ii  linux-image-2.6.29-020629-generic          2.6.29-020629    Linux kernel 
image for version 2.6.29 on x86
  ii  linux-image-generic                        2.6.28.11.14    Generic Linux 
kernel image
+ 
+ As in this bug: https://bugs.launchpad.net/linux/+bug/332772
+ removing "splash" from grub, and adding "vga=791", fixes the problem on the 
current Jaunty kernel: 2.6.28-11-generic.

-- 
[jaunty] Dell Inspiron 1525 sticks on "System will now halt", works with 2.6.29
https://bugs.launchpad.net/bugs/349778
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