I believe I may also be experiencing this bug, with a brand-new install
of Lucid beta-2. The title certainly matches my problem.

lspci shows:
01:00.0 VGA compatible controller: nVidia Corporation NV34 [GeForce FX 5200] 
(rev a1)

...this card has one DVI and one VGA output. When both outputs are
connected, the system is *totally* unresponsive once it reaches the
xsplash logo with "Ubuntu" and five orange dots (on a normal boot, this
displays as the GDM login fades in).

If I disconnect either output, the system boots without issue; I can
later reconnect the output, turn on the corresponding monitor, and use
System > Preferences > Monitors to configure it, also without issue.

-- 
System fails to boot with plymouth installed (nouveau driver with >1 display)
https://bugs.launchpad.net/bugs/533135
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