I thought I would post an answer here since google kept leading back here.
The kernel that I was using was wrong. Thanks to the guys/gals at DO for fixing it for me...
Here is how you do it for yourself.
Select the droplet.
Left click on "console access".
Login to console.
Shutdown droplet i used
sudo shutdown now for my Ubuntu.
Left click on "back to droplet" button
Left click on "power" tab
Left click on "power off" tab
Left click on the "Power off" button.
Left click on the "settings" gear
Select "Kernel" tab
DigitalOcean changed mine to Ubuntu 12.04 x64 vmlinuz-3.13.0-43-generic. *Make sure you choose the right kernel. End of Public Service Announcement *
Left click on the "change" button
Left click on the power button to reboot the droplet
And Life was good for me after that .
Server started up no errors and all was good.