Did you do the new feature on apt-get that removes unnecessary packages?
If so, it seems it might have removed upstart.. this was another bug
recently posted.

Make sure you have upstart package on your system to init the new
kernels. You can use a livecd and chroot your filesystem if you are not
able to currently do anything.

-- 
Kernel 2.6.17-7-generic fails to boot, I get the BusyBox instead
https://launchpad.net/bugs/59792

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