oneiric d-i based images kernel panic on boot

Oneiric 20110725 Ubuntu Alternate and Server

Images do not boot.
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mount: mounting devpts on /dev/pts failed: No such file or directory
Kernel panic - not syncing: Attempted to kill init
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Console output attached

ProblemType: Bug
DistroRelease: Ubuntu 11.04
Package: debian-installer (not installed)
ProcVersionSignature: Ubuntu 2.6.38-10.46-generic 2.6.38.7
Uname: Linux 2.6.38-10-generic x86_64
NonfreeKernelModules: fglrx
Architecture: amd64
Date: Mon Jul 25 17:21:09 2011
MachineType: Gigabyte Technology Co., Ltd. GA-890GPA-UD3H
MemoryUsage:
 total used free shared buffers cached
 Mem: 8191840 8123684 68156 0 314948 6555908
 -/+ buffers/cache: 1252828 6939012
 Swap: 4190204 0 4190204
ProcEnviron:
 LANGUAGE=en_US:en
 LANG=en_US.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-2.6.38-10-generic root=UUID=cf89ba34-108b-404d-9804-32d54a1df2ea ro quiet splash vt.handoff=7
SourcePackage: debian-installer
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 07/23/2010
dmi.bios.vendor: Award Software International, Inc.
dmi.bios.version: FD
dmi.board.name: GA-890GPA-UD3H
dmi.board.vendor: Gigabyte Technology Co., Ltd.
dmi.board.version: x.x
dmi.chassis.type: 3
dmi.chassis.vendor: Gigabyte Technology Co., Ltd.
dmi.modalias: dmi:bvnAwardSoftwareInternational,Inc.:bvrFD:bd07/23/2010:svnGigabyteTechnologyCo.,Ltd.:pnGA-890GPA-UD3H:pvr:rvnGigabyteTechnologyCo.,Ltd.:rnGA-890GPA-UD3H:rvrx.x:cvnGigabyteTechnologyCo.,Ltd.:ct3:cvr:
dmi.product.name: GA-890GPA-UD3H
dmi.sys.vendor: Gigabyte Technology Co., Ltd.