I can demonstrate quite straightforwardly that this is not a kernel bug.
All that it takes to make the system boot cleanly is to change 'iface
eth0 inet dhcp' to 'iface eth0 inet manual' in /etc/network/interfaces.

I'm looking into a better solution.

** Changed in: linux (Ubuntu Karmic)
       Status: New => Invalid

** Package changed: debian-installer (Ubuntu Karmic) => open-iscsi
(Ubuntu Karmic)

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karmic: iSCSI root: boot hangs on starting iscsid
https://bugs.launchpad.net/bugs/457767
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