after waiting about 10 minutes the Ubuntu installation never dropped to
a shell.

i have the same problem installing Fedora 7 except i can access a shell
after 60 seconds. it does not allow me to run that first command you
suggested... and there is no /var directory, it doesn't exist.

-- 
Cannot install, hangs after "Freeing initrd memory: xxxxk freed"
https://bugs.launchpad.net/bugs/40093
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