I don't think that this is a duplicate of bug #213754.
This only happens to me when starting the system , and not on reboot. Rebooting 
the system goes fine.
In bug #213754 they talk about they can't reboot.
I have found that this happens to me when I have connected my usb 3G modem 
(option_icon that uses "option" and "usbserial" kernel modules).
If I disconnect the usb modem's cable the system boot up without hangin'.

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[hardy] iTCO_wdt: failed to reset NO_REBOOT flag, reboot disabled by hardware
https://bugs.launchpad.net/bugs/218357
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