/etc/rc.local doesn't run at boot

[Larry Alkoff]

Using Kubuntu 8.04.4 LTS

When I boot the machine, /etc/rc.local doesn't run.

root at arriba /etc/init.d# ls -l /etc/rc.local
-rwxr-xr-x 1 root root 3.2K 2010-02-14 18:31 /etc/rc.local

root at arriba /etc/init.d# ls -l /etc/init.d/rc.local
-rwxr-xr-x 1 root root 522 2009-01-23 09:01 /etc/init.d/rc.local

init.d/rc.local looks like this:
--------------------------------
root at arriba /# cat /etc/init.d/rc.local
#! /bin/sh

PATH=/sbin:/bin:/usr/sbin:/usr/bin
[ -f /etc/default/rcS ] && . /etc/default/rcS
. /lib/lsb/init-functions

do_start() {
         if [ -x /etc/rc.local ]; then
                 log_begin_msg "Running local boot scripts (/etc/rc.local)"
                 /etc/rc.local
                 log_end_msg $?
         fi
}

case "$1" in
     start)
         do_start
         ;;
     restart|reload|force-reload)
         echo "Error: argument '$1' not supported" >&2
         exit 3
         ;;
     stop)
         ;;
     *)
         echo "Usage: $0 start|stop" >&2
         exit 3
         ;;
esac

I can't understand why /etc/init.d/rc.local doesn't execute 
/etc/rc.local but it does not.

larry