I tested with the 20091009.1 daily-live iso image.  If I selected "safe
graphics mode" and then selected the LiveCD option, the system booted
successfully into the LiveCD environment.  I was also able to install
the nvidia driver from the restricted drivers manager and logout+login
to Ubuntu with the nvidia drivers enabled.

When I tried to boot into LiveCD environment using the normal graphics
mode (not selecting any alternate boot options), I only got a black
screen.  The boot process itself appeared to go successfully because I
could go to VC1 (ctrl+alt+f1) and type "ubuntu<enter>" to login on the
VC1 terminal and then "sudo halt<enter>" to successfully shutdown the
system.  At the end of shutdown the white text showed up saying to
remove the disc from the drive before pressing Enter to shutdown.

-- 
9.10 beta fails to boot into LiveCD (flashing text)
https://bugs.launchpad.net/bugs/444395
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