I was able to get to a GUI with these steps:

1) Restart computer with Live CD in tray (I used Jaunty)
2) At the boot menu choose boot options, press escape to get rid of the menu, 
replace 'quiet splash' with 'single'
3) At the recovery menu choose 'root'
4) Unload the faulty rtl8180 driver with this command:
  rmmod rtl8180
5) Blacklist the rtl818x drivers by editing /etc/modprobe.d/blacklist.conf and 
add these lines to the bottom:
  blacklist rtl8180
  blacklist rtl8187
6) Make sure rtl8180 really is gone by running this command (there should be no 
output):
  lsmod | grep rtl
7) Go back to the recovery menu by typing 'exit' or pressing ctrl+d
8) Choose 'normal startup' or whatever the top thing is
9) Tada! It actually works! And you can use ndiswrapper like before!

-- 
Realtek RTL-8185 based Wifi NIC causes system lockup
https://bugs.launchpad.net/bugs/395403
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