For what it's worth:
I got this error on gutsy beta today, just after having modified /etc/init.d/rc 
with 
CONCURRENCY=shell
instead of the previous
CONCURRENCY=none
(I wanted some more speed from my dual core :-)


I took the change back and the 
"Internal Error" "failed to initialize HAL!"
disappeared.

-- 
Gusty Beta: error on startup. "Internal Error" "failed to initialize HAL!"
https://bugs.launchpad.net/bugs/146812
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