Hi LGB, thanks for persisting with the additional testing, and figuring
out how to work around the network issue.

Looking at netconkern.log, I agree with your assessment that the failure
occurs well before X starts up.  The log is a bit confusing as to what
exactly is failing, however it appears that drm initializes
(successfully apparently), at 19 sec, and then failures begin to occur
when networking is set up:

[   79.112037] ieee80211 phy0: Failed to initialize wep: -110
[  243.716037] INFO: task jbd2/sda1-8:263 blocked for more than 120 seconds.

Then various parts of the kernel start failing with errors relating to I
guess memory errors?

It is quite interesting that toggling KMS on or off changes the
behavior.  This makes me wonder if perhaps the issue is that the drm
module is leaving the kernel in an inconsistent state, such that
subsequent modules fail.

I've added a task for the kernel, since this appears to be a kernel drm
bug of some sort.

** Also affects: linux (Ubuntu)
   Importance: Undecided
       Status: New

** Bug watch added: freedesktop.org Bugzilla #36007
   http://bugs.freedesktop.org/show_bug.cgi?id=36007

** Also affects: xserver-xorg-driver-ati via
   http://bugs.freedesktop.org/show_bug.cgi?id=36007
   Importance: Unknown
       Status: Unknown

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-ati in Ubuntu.
https://bugs.launchpad.net/bugs/735126

Title:
  [natty] system freezes on boot without disabling KMS

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