Right.. I seem to have found the problem, looks like a clear bug!

My /etc/fstab contained a line as follows - once I removed it, my system
was able to boot successfully:

cgroup /mnt/cgroup cgroup defaults 0 0

** Summary changed:

- Boot failure after upgrade - nothing started except mounts
+ cgroup in fstab prevents boot after upgrade to Lucid

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cgroup in fstab prevents boot after upgrade to Lucid
https://bugs.launchpad.net/bugs/574388
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