I upgraded from a freshly updated F17 to F18 a couple of hours ago. The upgrade worked fine, but the subsequent reboot got stuck forever. The apparent cause is this crap in my grub.cfg: title Fedora (3.7.2-204.fc18.x86_64) root (hd0,2) kernel /vmlinuz-3.7.2-204.fc18.x86_64 rd.md=0 rd.dm=0 rd.lvm.lv=vg_amaluto/root KEYTABLE=us rd.luks.uuid=luks-cd5b520b-745e-4a9b-bebf-d9f094487d20 SYSFONT=True ro root=/dev/mapper/vg_amaluto-root rd.lvm.lv=vg_amaluto/swap LANG=en_US.UTF-8 rhgb quiet upgrade systemd.unit=system-upgrade.target plymouth.splash=fedup initrd /initramfs-3.7.2-204.fc18.x86_64.img Removing systemd.unit=system-upgrade.target fixed the problem and my system booted into F18 successfully. (Note: this is grub, not grub2. This might be part of the cause.)
Andy, did you install any kernel updates between running fedup and rebooting into the upgrade? Can you post your grub.conf file? I've tested upgrading a system using grub-0.97 from F17 to F18, and the systemd.unit argument is only added to the new entry created for fedup in grub.conf.
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For the record, this should be fixed by fedup-0.8.0, which no longer requires the extra boot arguments.
fedup-0.8.0 indeed worked fine for me when upgrading two machines to F20.
Hooray! Let's change this to a slightly more positive outcome, then. *** This bug has been marked as a duplicate of bug 964303 ***