I was able to recreate this problem in a VirtualBox test environment.

Steps to recreate this situation:

1) Install Ubuntu Server 9.10
2) Apply all available updates
3) Reboot
4) Add openssh-server
5) ssh to the VM test server
6) use wget to DL the latest ooRexx for Ubuntu:
wget 
http://downloads.sourceforge.net/project/oorexx/oorexx/4.0.0/ooRexx-4.0.0.i586.deb?use_mirror=cdnetworks-us-1
7) Install said package:
sudo dpkg -i ooRexx-4.0.0.i586.deb
8) Reboot
9) The rxapid process never forks, system will not complete booting on tty1

I also opened a bug report about this at the ooRexx project site:

"rxapid service suddenly not forking on Ubuntu Server 9.10"
https://sourceforge.net/tracker/?func=detail&atid=684731&aid=2963828&group_id=119701

As ooRexx 4.0 has been out for a while, it must be something in one of
the latest Ubuntu updates as the package of ooRexx has not changed since
it was last working correctly.

** Bug watch added: SourceForge.net Tracker #2963828
   http://sourceforge.net/support/tracker.php?aid=2963828

-- 
Suddenly start_daemon does not fork the new pid, hangs the script
https://bugs.launchpad.net/bugs/532341
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