I had a similar problem. After trying again and again and again,it
eventually worked. Now with Ubuntu Feisty installed, it only sometimes
gives me that error. However, it usually takes about 15 minutes before
it happens again, if I'm in the terminal, I can see the BUG error, and
if not, the keyboard stops working, but the mouse still moves fine.

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BUG: soft lockup detected on CPU#0 After "Loading Gnome Display Manager" in 
7.04 Full
https://bugs.launchpad.net/bugs/108355
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Bugs, which is the bug contact for Ubuntu.

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