Guys,

I really doubt that it's an X server issue.

(yes I have the exact same problem)

Look at bugs 353350 and 366989: all three seems to describe same
symptoms.

The short version (from two other bug reports): looks like a kernel
problem - selecting older kernel in grub does the trick of booting the
system.

-- 
System hangs booting 9.04 (desktop, server, xubuntu) live or installed via. 
alternative cd
https://bugs.launchpad.net/bugs/369518
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