a dramatic kernel panic on ALL 11.04-based distros.

What system are you running it on? Does it have a make and model?

There're known issues regarding btrfs and lvm.
https://wiki.ubuntu.com/NattyNarwhal/ReleaseNotes

Other than that, aside from reinstalling kernel-image, I'd try some options.
dpkg-reconfigure linux-image-generic
update-initramfs -u
update-grub

I have installed it on MSI GX733.

Tried the options Sam, did not help :(

> Whenever I power OFF the PC, then turn it ON again- all goes fine

Since that works try to retrieve error messages.
Get pen and paper ready and try to catch meaningful errors.
Please remove 'splash' from grub (update-grub after edit) and do a 'sudo reboot' in tty.
## Just guessing maybe network isn't unloaded properly.

Also take a look at dmesg, dmesg.0, kern.log, kern.log.1, boot.log.
To keep this thread readable use pastebin and post links here.

Run S.M.A.R.T test via disk-utility or command line whatever you prefer.
Exclude hd defect. Unplug any USB devices on reboot. Verify BIOS settings (maybe needs an upgrade?).

here is boot.log: http://pastebin.com/feMv424L

dmesg: http://pastebin.com/XtMfE63J

dmesg.0: http://pastebin.com/GuXZCgkS

kern.log: http://pastebin.com/v8tmcCm4

Will run S.M.A.R.T. asap; BIOS seems up to date- it is also set up to default settings- all 5 previous Ubuntu's working fine on such settings- for last 3 versions rolling on 64bit version.

Have run S.M.A.R.T.- no defects detected- HD fully operational.

Couldn't catch a lot of stuff with a pencil, could only take a pic of a piece of message that showed up:

http://img689.imageshack.us/i/dsc0044yx.jpg/

Hope we can solve the problem, cheers.

Well done. The 'call trace' image is something for kernel debuggers. Please consider to report a bug, using the button 'create bug report'.
If more info will be requested it can be uploaded with 'apport-collect <bug number>'.

In case you'd like to try mainline kernel, test the current one.
http://kernel.ubuntu.com/~kernel-ppa/mainline/daily/current/

Change to download directory and install with
sudo dpkg -i *.deb

In detail explained there.
https://wiki.ubuntu.com/Kernel/MainlineBuilds

## Beside usb not sure if those lines are related.
# kern.log
kernel: [ 18.966654] phy0 -> rt2800pci_mcu_status: Error - MCU request failed, no response from hardware
kernel: [ 0.311394] Trying to unpack rootfs image as initramfs...
kernel: [ 646.841976] Btrfs loaded

Bug created. So You say I SHOULD try the mainline kernels, or not?

Because I do not know what next steps I should take ;)

Cheers, Jakub

Tried the mainline kernel- the error is exactly the same... ;(

So it means that my PC is simply not capable of handling modern kernels? Cause that simply frightens me- my PC is not that old, it is actually still (for today's standards) a medium, if not a bit better than medium class...

I hope that it will get better :)

> mainline kernel- the error is exactly the same

Please update your bug description that it was also tested with mainline kernel and which version.
Just needs a little patience, but I'm sure with your support they'll figure out what's going on.

Well I do hope too- it would be funny if a system what I am trying to convince all my friends to use too wouldn't work for me ^^

Now that the bug is being worked on and you have discovered a workaround (https://bugs.launchpad.net/ubuntu/+source/linux/+bug/784484/comments/77), I recommend marking this question as Solved. That doesn't mean that work on the bug is done, of course.