I'm downloading the livecd now, but that error message is exactly the one I got when I enabled the rawhide repo in F11 and after the updates I rebooted and it did exactly what you show above. Except for the last line about sleeping forever.
I did make a copy of dmesg, you might want to check that out? Just get to a terminal and login and type dmesg, I directed the output to a file and here's the last thing in mine, after some NFS messages that appear to be fine -- in case there's another similarity:
eth0: no IPv6 routers present
Not sure that'll help or not...