For those of you encountering this with VirtualBox, moving the system
drive(s) to a virtual IDE controller instead of a virtual SATA
controller fixes it.
I had the same issue after installing 10.04 to two virtual SATA drives
(1 sys + 1 swap), I then tried an expert install using LILO instead of
GRUB, but the same problem appeared. I then moved the two virtual drives
from the virtual SATA controller to the virtual IDE controller, and it
booted nicely.

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Gave up waiting for root device after upgrade then busybox console
https://bugs.launchpad.net/bugs/360378
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