Yes, this is still an issue on Jaunty.

As commented in the kernel bugzilla, the patch allows use of the SD card
reader, but problems remain if a PCMCIA card is used. It is not clear to
me whether the PCMCIA problem is there without the patch or not. At
worst, the patch turns a "can't boot" problem into a "can't insert extra
hardware" problem, which in my point of view is an improvement, but it's
clearly far from optimal.

I would personally welcome the patched kernel going into the
repositories. Other people may disagree.

-- 
sdhci module hangs Everex StepNote 2053T
https://bugs.launchpad.net/bugs/187671
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