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0e1f616
(Get the code!)
I can confirm FactTech's issue too, this time with an upgrade from Ubuntu 7.10 to 8.04 with the alternative install cd and the latest package updates from the internet enabled.
My machine has 1GB Ram so it has nothing to do with memory imho. (AMD 64 -3000)
The machine is at this moment pretty much useless just like jdaviescoates' and I'm looking for a workaround.