I had similiar issue with 7.10 on Apple PPC G3 platform.  The source of the
problem was that initramfs was missing IDE driver for my hardware.   The
problem only occured after install.  The LiveCD had the driver.

I basically followed the procedure listed at bottom of this
http://ubuntuforums.org/showthread.php?t=588153 from Efrain
Valles<http://ubuntuforums.org/member.php?u=51963>
to fix the problem.  It basically rebuilts the initramfs with the missing
driver.  I don't know the driver you need so you will probably have to
perform lsmod | grep ide  or lsmod | grep ata from liveCD to find listed
drivers.

-- 
Boot fails with 2.6.24-4 with initramfs error on hardy
https://bugs.launchpad.net/bugs/183428
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