After replacing kernel parameters as explained in comment #4
quiet splash
with
acpi=off

from 18Nov2009 2pm IST to now (20Nov2009 10am IST)

no hang after sacrificing acpi features. If hangs I will post.

I am using Intel D845GERG2 motherboard in the desktop with 1GB RAM in
our computer centre where the issue is solved as above. Dear James
Cobban can I please know the motherboard chipset  you are using. I will
try here in one of my students laptop.

Have a nice day

-- 
hang in Karmic Koala
https://bugs.launchpad.net/bugs/477918
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