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This is a problem related to the hwclock binary which is common to a number of different Linux distributions in addition to Ubuntu.
<pre>
init.d/hwclockfirst.sh
init.d/hwclock.sh
</pre>
and place a exit 0 line immediately after the #!/bin/sh. For example:
<pre>
#!/bin/sh
exit 0
</pre>
Once this change has been made to both the hwclockfirst.sh and hwclock.sh files simply reboot the system and Ubuntu should boot fully without hanging.
