Just to make sure that issue was related to the current kernel release I 
installed older version of Ubuntu.
Ubuntu 9.04                 no nforce2 errors
Upgrade to 9.10           no nforce2 errors
Upgrade to 10.04         nforce2_SMBUS 0000:00:03.2: error probing SMB1 error 
begins
                                  nvidia graphics drivers not working
                                  force boot into low graphics mode

These are my observations

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Ubuntu boot delay - nForce error
https://bugs.launchpad.net/bugs/575296
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