Ive finally sorted it out. The reason that it has taken so long to sort out is 
the appalling documentation of the
boot process. Eventually, I had to resort to go through initrd.img with a fine 
tooth-comb to find buried in the
initrd init script that there was, in fact, a boot time blacklist option. This 
was not mentioned anywhere in any
of the Debian or Unbuntu documentation or anywhere on the internet. The 
solution, which has taken three
weeks to find, is to edit the boot parameters in /boot/grub/menu.lst: add 
"blacklist=r8169".

I would hope that users with less experience than myself would get more 
support/encouragement. It is now
more than two weeks since I posted the first call for help. In that time, it 
would appear that the only action taken
is the award of a bug number (779040). No other acknowledgement triage or other 
action seems to have been
taken.  I think that you can now classify this as a bug, possibly a kernel bug, 
that has been solved. The bug
would appear to be the kernel probing is insufficient to distinguish between 
early versions of the Realteak
RTL8101/RTL8102 chipset and the latest RTL8101E/RTL8102E PCI Express chipset 
(for which the r8169 seems
to be only partially compatible).

The problem was not helped by the lack of Ubuntu documentation of how to turn 
off the dreaded DHCP. I believe
that the (expert) user should be given the option of setting up a static IP 
address in the install dialog. 
On security grounds, all users should be given the option of disabling wlan -- 
which does wonders for
laptop battery life!

John Hunter

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https://bugs.launchpad.net/bugs/779040

Title:
  System hangs (solid) early during shutdown

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