I have this problem since two days (Linux 2.6.31-10, upstart 0.6.3-3).
After ca. 10 of these STOP/CONT cycles the system finally reboots/shuts
down. Two times, I was even dropped to an emergency shell after starting
the system later and had to fsck my filesystem. One is karmic amd64, the
other karmic i386.
** Changed in: upstart (Ubuntu)
Status: Won't Fix => New
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init rc main process stopped and continued in loop on system reboot/shutdown
https://bugs.launchpad.net/bugs/401333
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