This is a kernel problem, and as stated there is sod all wrong with my 
hardware! At the time of Hardy.1 install my laptop was 2 weeks old. Trust me on 
this, this is NOT a hardware fault I have run memtest just in case, passed it 
fine. Its to do with ath_pci as stated above. Also in Hardy the kernel boot 
option (LiveCD) generic.all_generic_ide=1 allows it to boot fine, but 
restricted modules aren't automatically loaded on the LiveCD for atheros wifi 
is it?
Also, the correct package is linux-restricted-modules, or at the very least 
just linux, as it is to do with the kernel.

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[intrepid] Compaq Presario CQ50 cannot install/boot
https://bugs.launchpad.net/bugs/287244
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