Ubuntu Xen System Boot Hangs After Setting System Clock Message
From Virtuatopia
After installing the Ubuntu xen-server packages and rebooting the operating system using the Xen kernel the boot process appears to hang after displaying the "Setting system clock..." message.
This is a problem related to the hwclock binary which is common to a number of different Linux distributions in addition to Ubuntu.
One way to prevent this problem from occurring on an Ubuntu system is to edit the following system initialization files:
init.d/hwclockfirst.sh init.d/hwclock.sh
and place a exit 0 line immediately after the #!/bin/sh. For example:
#!/bin/sh exit 0
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.