Thanks for your bug report. This is a known issue with Herd 4 and is
slated to be fixed. This issue was actually mentioned in the release
notes:
This is an early set of images, so you can expect some bugs. Among
these are the following (so you do not need to bother reporting these
if you encounter them):
* The desktop CD fails to reboot when the graphical installer
finishes, due to a change in GDM which is not yet picked up by
other components of the distribution.
** Changed in: Ubuntu
Status: Confirmed => Rejected
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Problems at end of Feisty herd 4 install to hard drive
https://launchpad.net/bugs/85853
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