DiagonalArg, I think the bug you're experiencing may be bug #531912 ,
which has only recently been fixed in 11.04. The fix should, however, be
backported to 10.10 and 10.04, as indicated by the status of the tasks
for Lucid and Maverick.

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https://bugs.launchpad.net/bugs/497299

Title:
  upstart not starting init-scripts (event net-device-up IFACE=lo
  missing)

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