Same problem here, after upgrading from 9.04 to 9.10, the rc.local is not 
executed (at the end of startup) anymore. The execution bit is set:
-rwxr-xr-x 1 root root 351 2009-06-29 15:32 /etc/rc.local

The service is also still included in the runlevel directory.

** Attachment added: "rc.local"
   http://launchpadlibrarian.net/35730286/rc.local

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/etc/rc.local is not executed at startup
https://bugs.launchpad.net/bugs/471266
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