Wubi installed ubuntu 8.04 stops after start

Ubuntu 8.04 installed to D:\ partition with wubi-8.04.exe, aside of Win XPHome (SP3) on FAT 32 and perfectly worked with kernel 2.6.24-16-generic but after downloading the offered refreshing files and installing kernel 2.6.24-17-generic, when booting stopps after certain operations. When selecting kernel 2.6.24-16-generic starts normally and works without problem. What could be the problem? It waits some command and entering "help" and CR non of the suggested commands finishes start up.
When any pendrive or external HDD connected to the USB port, automatically mounts it and waits for another command. Does not responds to the unmount command. Only the reset button helps to restart the computer.
I am awailable on Skype if somebody can help me. Thanks in advance! (<email address hidden>)