The boots (both normal and rescue mode) die just after "run_scripts
/scripts/init-bottom" which completes. Looking at init, it is trying to
do some filesystem work next:
"Move virtual filesystems over to the real filesystem"
it attempts a couple of mounts, does some housekeeping, then fires off
the console.
I can't see anything strange here but system startup is not my expertise.

FYI: my iso was downloaded yesterday so I assume it is good.

I'm not sure where to go next - I have managed to build one good 10.04
system on different hardware.
I am using it in place of the system I really want to use <sigh> I am
not going to spend a whole lot of time on this (already have) so unless
there is some magic, it's back to Debian on that box.