Is the problem reproducible when booting without 'splash'?

Does pressing 'Esc' when things appear to lock up have any effect?

If neither of these gives us any more information, the next step will be
to have you edit /etc/init/mountall.conf to append '--debug' to the
'exec line.

-- 
System fails to boot with plymouth installed (ATI driver)
https://bugs.launchpad.net/bugs/540706
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