Seems linux-backports-modules fixed this issue. Closing this bug.
Thanks.
** Package changed: linux (Ubuntu) => linux-backports-modules-2.6.28
(Ubuntu)
** Changed in: linux-backports-modules-2.6.28 (Ubuntu)
Status: Incomplete => Fix Released
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iwlagn driver crashes, preventing shutdown from completing
https://bugs.launchpad.net/bugs/375924
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