I also have this problem.

My install was as a VM on a XEN server (running on ubuntu server 8.04).

The installation was by debootstrap.

I had to link gutsy's scripts to karmic to make it work at all but I
don't believe this is the cause because all ubuntu dist's are linked to
gutsy.

Since the status of this bug is "Fix Released" I tried stopping the VM
and updating the image by xen-update-image but no updates were available
and problem remaines.

All (host and guest) running 32bit versions.

-- 
init: mountall main process terminated with status 1
https://bugs.launchpad.net/bugs/430374
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