I get the same message
After freshly installing Debian 5.0 (lenny). I rebooted the system and when I selected the default GRUB entry I got a similar console output and it halted:
Booting 'Debian GNU/Linux, kernel 2.6.26-2-686'
Filesystem is ext2fs, partition type 0x83
kernel /boot/vmlinuz-2.6.26-2-686 root=/dev/sda1 ro quiet
[Linux-bzImage, setup=0x3000, size=0x16c910]
Then, all you get is the blinking cursor at the next line. Just blinking indefinitely.
I tried using the rescue mode from the Debian net install disk to try and fix the GRUB installation, if in case there was any problem with it, with no luck.
Any suggestions or ideas?