I have this same problem too, that started after an upgrade from Ubuntu
10.10.

I suspect the 2.6-38-8 pae kernel, has some kind of incompatibility with the 
combination of uvesafb and nvidia proprietary driver, because they worked under 
Ubuntu 10.10.
Applying the workaround included in the bug description, also disables Plymouth 
splash on boot. To fix that is necessary to revert to vesafb, with no TTYs 
(Ctrl+Alt+F1).  

Acording to 
http://paolobernardi.wordpress.com/2011/05/01/fix-plymouth-on-ubuntu-after-installing-nvidia-or-ati-proprietary-drivers-for-ubuntu-11-04-natty/#comment-186
 
another workaround would be replacing the linux-image-generic-pae with the 
linux-image-generic kernel.

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https://bugs.launchpad.net/bugs/775039

Title:
  Booting hangs on uvesafb

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