Did you check that die file owner and permissions are correct on the root filesystem? Especially the init script to by able to start the second boot stage:
# ls -l /sbin/init -rwxr-xr-x 1 root root 167192 Jan 18 2013 /sbin/init -- You received this bug notification because you are a member of Ubuntu Touch seeded packages, which is subscribed to upstart in Ubuntu. https://bugs.launchpad.net/bugs/430272 Title: karmic boot hung after /scripts/init-bottom Status in upstart package in Ubuntu: Fix Released Bug description: After applying updates to karmic on September 15, 2009, the machine no longer boots. It hangs after running /scripts/init-bottom. This is the case for regular boot and recovery mode as well. A screen shot of the console is attached. The machine successfully booted with updates on September 14, 2009. To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/upstart/+bug/430272/+subscriptions -- Mailing list: https://launchpad.net/~touch-packages Post to : touch-packages@lists.launchpad.net Unsubscribe : https://launchpad.net/~touch-packages More help : https://help.launchpad.net/ListHelp
