I had the exact same problem using Ubuntu 7.04 beta on a Dell Optiplex
320.

The Ubuntu live boot well (not the case for version 6.10).
The Install goes ok: use the entire disk (sda) for Ubuntu install.
Reboot
Goes through bios
Goes through grub; Grub menu can be accessed with the esc key
Than pc hangs while displaying a blank screen with only the character _ 
blinking in the upper left corner.

No messages from the kernel are displayed. No switch to graphical boot.

I have tried a couple of things, including trying to switch to lilo but
with no success, it seems the kernel has a problem booting on an sda
disk.

Could it be related to this bug:
http://lists.us.dell.com/pipermail/linux-desktops/2007-January/000148.html

-- 
can't restart a desktop installation on i386
https://launchpad.net/bugs/79548

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