In order to keep from a long delay while it said it was making the volatile files and directories, I had to run the swapon command on my specified swap device. After that it went by that section without problem. I haven't upgraded any boxes with NFS yet - possibly this weekend I'll get it done.
I'd recommend starting in single user mode by editing the boot command and adding a 1 at the end of the second line. Then you can experiment running each service one at a time to try to see where the problem is. Run them in the background (service named start &) to make sure you can still get at the command line. That and the ability to see the /var/log/messages and other boot time files would be helpful for anybody who could help with the boot problems you are seeing.