Using daily build 7-July-2009 to rebuild from scratch solves the problem.
> 
> From: mlindeblom <email address hidden>
> Date: 2009/07/07 Tue AM 06:27:13 CDT
> To: <email address hidden>
> Subject: Re: [Bug 394371] Re: boot failure after 2.6.31 kernel upgrade
> 
> The next few updates resulted in a totally unusable system.  I tried
> using the daily build from 3-Jul-09 to rebuild from scratch; however: it
> resulted in a blank screen.
> 
> I will try the next few daily builds.
> 
> I am using an ATI HD3450 graphic card and a AMD 3800+ cpu.
> > 
> > From: Andy Whitcroft <email address hidden>
> > Date: 2009/07/07 Tue AM 05:54:00 CDT
> > To: <email address hidden>
> > Subject: [Bug 394371] Re: boot failure after 2.6.31 kernel upgrade
> > 
> > This is reported to be the logs from the boot failure on 2.6.31-1 but
> > the log itself claims otherwise:
> > 
> >   Current Operating System: Linux karmic 2.6.30-10-generic #12-Ubuntu
> > SMP Mon Jun 22 16:30:32 UTC 2009 x86_64
> > 
> > Could we first get you to update your kernel to the newer 2.6.31-2.16
> > kernel and test there, if that fails could we try and get the gdm logs
> > from that.  Thanks!
> > 
> > ** Changed in: linux (Ubuntu)
> >        Status: Triaged => In Progress
> > 
> > ** Changed in: linux (Ubuntu)
> >      Assignee: (unassigned) => Andy Whitcroft (apw)
> > 
> > -- 
> > boot failure after 2.6.31 kernel upgrade
> > https://bugs.launchpad.net/bugs/394371
> > You received this bug notification because you are a direct subscriber
> > of the bug.
> > 
> > Status in ?linux? package in Ubuntu: In Progress
> > 
> > Bug description:
> > Boot hangs at GDM banner after 2.6.31 kernel upgrade.
> > Using 2.6.30.10 works fine.
> > 
> > ProblemType: Bug
> > Architecture: amd64
> > Date: Wed Jul  1 11:11:02 2009
> > DistroRelease: Ubuntu 9.10
> > HibernationDevice: RESUME=UUID=16c70311-167c-4253-a795-ae663b08816c
> > MachineType: Unknow Unknow
> > Package: linux-image-2.6.30-10-generic 2.6.30-10.12
> > ProcCmdLine: BOOT_IMAGE=/vmlinuz-2.6.30-10-generic root=/dev/mapper/hostname-root ro quiet splash
> > ProcEnviron:
> >  LANG=en_CA.UTF-8
> >  SHELL=/bin/bash
> > ProcVersionSignature: Ubuntu 2.6.30-10.12-generic
> > RelatedPackageVersions: linux-backports-modules-2.6.30-10-generic N/A
> > SourcePackage: linux
> > Uname: Linux 2.6.30-10-generic x86_64
> > dmi.bios.date: 05/25/2007
> > dmi.bios.vendor: Phoenix Technologies, LTD
> > dmi.bios.version: 6.00 PG
> > dmi.board.name: RS690-SB600
> > dmi.board.version: Unknow
> > dmi.chassis.type: 3
> > dmi.chassis.vendor: Unknow
> > dmi.chassis.version: Unknow
> > dmi.modalias: dmi:bvnPhoenixTechnologies,LTD:bvr6.00PG:bd05/25/2007:svnUnknow:pnUnknow:pvrUnknow:rvn:rnRS690-SB600:rvrUnknow:cvnUnknow:ct3:cvrUnknow:
> > dmi.product.name: Unknow
> > dmi.product.version: Unknow
> > dmi.sys.vendor: Unknow
> >
> 
> -- 
> boot failure after 2.6.31 kernel upgrade
> https://bugs.launchpad.net/bugs/394371
> You received this bug notification because you are a direct subscriber
> of the bug.
> 
> Status in ?linux? package in Ubuntu: In Progress
> 
> Bug description:
> Boot hangs at GDM banner after 2.6.31 kernel upgrade.
> Using 2.6.30.10 works fine.
> 
> ProblemType: Bug
> Architecture: amd64
> Date: Wed Jul  1 11:11:02 2009
> DistroRelease: Ubuntu 9.10
> HibernationDevice: RESUME=UUID=16c70311-167c-4253-a795-ae663b08816c
> MachineType: Unknow Unknow
> Package: linux-image-2.6.30-10-generic 2.6.30-10.12
> ProcCmdLine: BOOT_IMAGE=/vmlinuz-2.6.30-10-generic root=/dev/mapper/hostname-root ro quiet splash
> ProcEnviron:
>  LANG=en_CA.UTF-8
>  SHELL=/bin/bash
> ProcVersionSignature: Ubuntu 2.6.30-10.12-generic
> RelatedPackageVersions: linux-backports-modules-2.6.30-10-generic N/A
> SourcePackage: linux
> Uname: Linux 2.6.30-10-generic x86_64
> dmi.bios.date: 05/25/2007
> dmi.bios.vendor: Phoenix Technologies, LTD
> dmi.bios.version: 6.00 PG
> dmi.board.name: RS690-SB600
> dmi.board.version: Unknow
> dmi.chassis.type: 3
> dmi.chassis.vendor: Unknow
> dmi.chassis.version: Unknow
> dmi.modalias: dmi:bvnPhoenixTechnologies,LTD:bvr6.00PG:bd05/25/2007:svnUnknow:pnUnknow:pvrUnknow:rvn:rnRS690-SB600:rvrUnknow:cvnUnknow:ct3:cvrUnknow:
> dmi.product.name: Unknow
> dmi.product.version: Unknow
> dmi.sys.vendor: Unknow
>