This issue was fixed for me when I installed the 2.6.31-8 Kernel. You
can install most necessary packages with apt-get:

sudo apt-get install linux-headers-2.6.31-8
sudo apt-get install linux-headers-2.6.31-8-generic
sudo apt-get install linux-image-2.6.31-8-generic

You can then install the linux-libc-dev package using wget:

wget wget
https://edge.launchpad.net/ubuntu/+source/linux/2.6.31-8.28/+build/1192025/+files
/linux-libc-dev_2.6.31-8.28_i386.deb

sudo dpkg -i *.deb

Do a reboot (this is the last time you should have to hit the power
button to reboot) and select the 2.6.31-8 kernel from the GRUB Boot
menu. Once you have booted up, try a shutdown or restart and you should
find that the problem has gone!

I too am affected by the GRUB bug (bug 420077) mentioned above... let's
hope they squash that one soon too!

-- 
[Karmic] Hangs during shutdown with kernel 2.6.31-7
https://bugs.launchpad.net/bugs/418509
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