A user on the Answers system, ziggy1194, using Ubuntu live cd 8.10 i386
is having the exact same problem and getting the error:

 init: rc- default main process( 5304) terminated with status 255

Which leaves me to believe that this is not directly related to the
video card, however something else. I wish there were more details in
the error. Given that it does not contain "SEGV" it leads me to
conclusion these are not the same bugs, however they are linked for the
time being as they have the same affect -- no installation and full stop
/hang-up of the system. But, as I said it does not seem like the video
card is causing the issue.

We are attempting installation using other methods. We will see what
happens. - CH

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Live CD init failure - rcs main process killed by SEGV
https://bugs.launchpad.net/bugs/229753
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