This appears to be an upstart bug and some type of regression between
Jaunty and Natty.

The solution for me was to edit rc-sysinit.conf -

in Natty it's start condition is: 
start on filesystem and net-device-up IFACE=lo

Whereas in Jaunty its:
start on filesystem

When I edited the script back to the way Jaunty was, it started working
correctly. It's possible this is also affecting other rcS scripts, since
my logs indicated that open-iscsi was never being invoked at all.

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https://bugs.launchpad.net/bugs/575240

Title:
  iscsid does not start automatically having iscsi root

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