I fixed my problem. I still do not know exactly what caused my issues, other than most of the upstart jobs were not starting. Since udev wasn't starting correctly, it probably caused the dev issue. I was getting strange errors on not being able to access files. I'm guessing something like the /var/run was missing. Since upstart is not the easiest thing to debug, and honestly could never figure out what file or directory it was trying to access. The only thing I did seem to notice was these init scripts seemed to be keying off runlevel. The ones that seem to run off dependency and emits events seemed to start fine. Anyways, once I noticed most of the upstart events were stopped, I immediately switched gears. I needed to add the --verbose to the kernel options, so I had to switch to the pv grub kernel to modify these settings. You have no control over the linode kernels. Strange thing happen, once I switched to the ubuntu kernel, the problem disappeared. The only real change that took place was me disabling a few boot options, the Xenify Distro, modules.dep Helper, automount dev was already disabled, and Disable updatedb is still yes. This is more or less changes need for the grub pv. I also had to disable ext3 write barriers, also a grub pv issue. I removed all my temporary upstart jobs and everything is working fine. I hate it when I fix something without knowing how I did it. I plan on leaving it in this configuration, as I did not know it was possible to run the ubuntu kernel until yesterday. Below is excerpts from the syslog.
Code:
Failed to spawn udev main process: unable to granpt: No such file or directory
Failed to spawn upstart-udev-bridge main process: unable to granpt: No such file or directory
Failed to spawn udev main process: unable to granpt: No such file or directory
Failed to spawn hwclock-save main process: unable to granpt: No such file or directory
Failed to spawn resolvconf post-stop process: unable to granpt: No such file or directory
Failed to spawn network-interface-security (networking) pre-start process: unable to granpt: No such file or directory
Failed to spawn networking pre-start process: unable to granpt: No such file or directory
Failed to spawn networking post-stop process: unable to granpt: No such file or directory
Failed to spawn cron main process: unable to granpt: No such file or directory
Failed to spawn dovecot pre-start process: unable to granpt: No such file or directory
Failed to spawn network-interface-security (networking) pre-start process: unable to granpt: No such file or directory
Failed to spawn networking pre-start process: unable to granpt: No such file or directory
Failed to spawn networking post-stop process: unable to granpt: No such file or directory
Failed to spawn network-interface-security (network-interface/tun1) pre-start process: unable to granpt: No such file or directory
Failed to spawn network-interface (tun1) pre-start process: unable to granpt: No such file or directory
Failed to spawn network-interface (tun1) post-stop process: unable to granpt: No such file or directory
Failed to spawn plymouth-stop pre-start process: unable to granpt: No such file or directory
Failed to spawn hwclock-save main process: unable to granpt: No such file or directory
Failed to spawn resolvconf post-stop process: unable to granpt: No such file or directory
Failed to spawn network-interface-security (network-interface/tun2) pre-start process: unable to granpt: No such file or directory
uname -a
Linux my-host 3.5.0-19-generic #30-Ubuntu SMP Tue Nov 13 17:49:53 UTC 2012 i686 i686 i686 GNU/Linux