Just updated with the newest stuff as of 6:20 Pacific---Got a couple of updates & rebooted to check out the new 2.6.30 kernel. Comes in text-only (no problem)---but it was stopping at starting sendmail....so I booted again with the .28 kernel & it too stopped at sendmail.
I went into one of my alternate systems and chrooted into Karmic...did a aptitude remove sendmail & cleaned all of sendmail & its depends out...then rebooted with the .30 kernel...all fine after that....
Not quite sure what barfed sendmail, but I recommend everyone remove it for at least a couple of days.......