Comment 20 for bug 89892

Boot your system from harddisk (safe mode). Then, open a shell window ('terminal') after booting. The terminal can be started via the pull-down menu Accessoires. Click on the Ubunutu logo on the upper left corner to do so.
Then enter the command

   ls /lib/modules

It should display among others something like kernel 2.6.20-16-generic.

Then execute

  cd /lib/modules/2.6.22-9-generic/2.6.22-9-generic/kernel/drivers/char/hw_random/
  sudo mv intel-rng.ko intel-rng.ko.off

This shall rename the filename and thus makes it invisible to the boot process.
You will have to enter your password for the command.

CAUTION: Whether this workaround works for your setup is not at all guaranteed! The bug was reported for HP Omnibook 6100. Hence, your boot problem might have a totally different root cause!!!

If you cannot boot from your hard disk, then I am unsure how you can repair the Feisty installation. If the system boots from the LIVE-CD, you might be able to access the harddisk. That's a different story.