lirc_i2c module (connected to a pvrusb2) spins at 100% cpu

I recently upgraded from Karmic to Lucid on my htpc and I am experiencing a bug which causes the lirc_i2c module (contained within the lirc-modules-source package) to use all of my CPU together with the rsyslogd process.
I am reporting against the kernel because the same lirc_i2c module with the latest karmic kernel doesn't have a problem.

I have a Hauppauge WinTV PVR USB2 device attached via USB. When I boot using the Lucid kernel I get the following in syslog:

Apr 6 22:07:54 mediacenter kernel: [ 51.344602] pvrusb2: Timed out control-write
Apr 6 22:07:54 mediacenter kernel: [ 51.344610] pvrusb2: Device being rendered inoperable
Apr 6 22:07:54 mediacenter kernel: [ 51.344632] pvrusb2: Attempted to execute control transfer when device not ok
Apr 6 22:07:54 mediacenter kernel: [ 51.344641] pvrusb2: Attempted to execute control transfer when device not ok
Apr 6 22:07:54 mediacenter kernel: [ 51.344649] pvrusb2: Attempted to execute control transfer when device not ok
Apr 6 22:07:54 mediacenter kernel: [ 51.344656] pvrusb2: Attempted to execute control transfer when device not ok

The last line is repeated thousands of times. If I reboot, the PVR causes the USB bus to hang stalling the computer at the BIOS screen. As soon as I disconnect the device, the computer boots normally.
Booting with kernel 2.6.31-20 everything is fine.

ProblemType: Bug
DistroRelease: Ubuntu 10.04
Package: linux-image (not installed)
Regression: Yes
Reproducible: Yes
ProcVersionSignature: Ubuntu 2.6.31-21.59-generic
Uname: Linux 2.6.31-21-generic i686
NonfreeKernelModules: nvidia
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.20.
Architecture: i386
ArecordDevices:
 **** List of CAPTURE Hardware Devices ****
 card 0: NVidia [HDA NVidia], device 0: ALC662 rev1 Analog [ALC662 rev1 Analog]
   Subdevices: 1/1
   Subdevice #0: subdevice #0
AudioDevicesInUse:
 USER PID ACCESS COMMAND
 /dev/snd/controlC0: mediacenter 3914 F.... pulseaudio
 /dev/snd/pcmC0D0p: mediacenter 3914 F...m pulseaudio
CRDA: Error: [Errno 2] No such file or directory
Card0.Amixer.info:
 Card hw:0 'NVidia'/'HDA NVidia at 0xfae78000 irq 22'
   Mixer name : 'Nvidia MCP7A HDMI'
   Components : 'HDA:10ec0662,19daa108,00100101 HDA:10de0007,10de0101,00100100'
   Controls : 28
   Simple ctrls : 15
Date: Wed Apr 7 14:54:45 2010
HibernationDevice: RESUME=
MachineType: To Be Filled By O.E.M. To Be Filled By O.E.M.
ProcCmdLine: root=UUID=0534b776-72a4-451e-bc2d-36f6daff83fc ro quiet splash
ProcEnviron:
 LANG=en_US.UTF-8
 SHELL=/bin/bash
RelatedPackageVersions: linux-firmware 1.33
RfKill:
 0: phy0: Wireless LAN
  Soft blocked: no
  Hard blocked: no
SourcePackage: linux
WpaSupplicantLog:

dmi.bios.date: 05/08/2009
dmi.bios.vendor: American Megatrends Inc.
dmi.bios.version: 080015
dmi.board.asset.tag: To Be Filled By O.E.M.
dmi.board.name: To be filled by O.E.M.
dmi.board.vendor: To be filled by O.E.M.
dmi.board.version: To be filled by O.E.M.
dmi.chassis.asset.tag: To Be Filled By O.E.M.
dmi.chassis.type: 3
dmi.chassis.vendor: To Be Filled By O.E.M.
dmi.chassis.version: To Be Filled By O.E.M.
dmi.modalias: dmi:bvnAmericanMegatrendsInc.:bvr080015:bd05/08/2009:svnToBeFilledByO.E.M.:pnToBeFilledByO.E.M.:pvrToBeFilledByO.E.M.:rvnTobefilledbyO.E.M.:rnTobefilledbyO.E.M.:rvrTobefilledbyO.E.M.:cvnToBeFilledByO.E.M.:ct3:cvrToBeFilledByO.E.M.:
dmi.product.name: To Be Filled By O.E.M.
dmi.product.version: To Be Filled By O.E.M.
dmi.sys.vendor: To Be Filled By O.E.M.