Does the 14.04.2 or newer iso also have the same issue?

Also, can you test the latest daily image of the development release?  It can 
be downloaded from:
http://cdimage.ubuntu.com/daily-live/current/

** Changed in: linux (Ubuntu)
   Importance: Undecided => Medium

** Changed in: linux (Ubuntu)
       Status: Confirmed => Incomplete

** Changed in: linux (Ubuntu)
   Importance: Medium => High

** Tags added: kernel-da-key

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https://bugs.launchpad.net/bugs/1355010

Title:
  ernel panic - not syncing: Attempted to kill init! exitcode=0x00000100

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