d-i based 10.04.3 images failed with "no kernel modules found"

Lucid 10.04.3 20110719.1 alternate and server failed to install with 'no kernel modules found'

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: Tue Jul 19 19:45:17 2011
MachineType: Gigabyte Technology Co., Ltd. GA-890GPA-UD3H
MemoryUsage:
 total used free shared buffers cached
 Mem: 8191840 8140516 51324 0 15168 6847964
 -/+ buffers/cache: 1277384 6914456
 Swap: 4190204 472 4189732
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.