I had this issue, but realized that the network was not coming up
automatically.  In /etc/network/interfaces, there was a line erroneously
commented out, like this:

auto eth0
# iface eth0 inet dhcp

Not sure why, or how, it ended up that way, since it worked fine before
the Gutsy upgrade; but uncommenting that line fixed the problem.

Note: had to do Alt+SysRq+E to be allowed to log in.

-- 
After upgrading my server to Gutsy booting hangs at "Starting kernel log daemon"
https://bugs.launchpad.net/bugs/150006
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