This happens to me, reproducibly (as long as usb_storage is loaded),
when upgrading from 10.04 to 10.10.  It results in an unusable system
that I wasn't even able to fix via chrooting.

As mentioned earlier, making sure the usb_storage module is not loaded
works as a workaround.

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grub-pc hangs while package is configured
https://bugs.launchpad.net/bugs/426239
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