Does affect me as well - here are the steps to reproduce:
Fresh install of Ubuntu Desktop 10.10, performing all online updates - reboot 
works fine. Then install mdadm the system does not boot any more:

mount: mounting /dev/disk/by-uuid/.... on /root
failed: Device or resource busy
...
...
No init found. Try passing init=bootarg.

See also:
https://bugs.launchpad.net/ubuntu/+source/mdadm/+bug/591696

-- 
[->UUIDudev] installing mdadm (or outdated mdadm.conf) breaks bootup
https://bugs.launchpad.net/bugs/158918
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