Sure enough, after removing the U3 fake-CD partition (using the tool on
my Sandisk Cruzer), the system no longer hangs on boot with the flash
drive plugged in.  This is a workaround for me, but not for anyone who
wants to maintain the U3 functionality of his or her drive.

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https://bugs.launchpad.net/bugs/773618

Title:
  usb storage device hangs boot with NVIDIA driver installed

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