OK! I BELIEVE I LOCATED THE PROBLEM!!!

Everyone with this problem try this.
UNINSTALL NVidia or ATI drivers that I'm mutch sure you installed using EnvyNG. 
Then reinstall the latest 2.6.24-20 kernel and reboot.
Then you can add your restricted drivers again by using EnvyNG.

I'm 99% certain that EnvyNG is the culprit for our problems.

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Hardy proposed 2.6.24-20-generic kernel update will not boot
https://bugs.launchpad.net/bugs/251344
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