I have a similar but a little unique issue.

I tried a USB lice CD of the Ubuntu 9.10 beta. As soon as I chose the
options, it takes for a while and the desktop appears. However the
desktop would be a total freeze !. Neither keyboard nor mouse works.

I tried on two different machines having intel CPU but one with nvedia
and the other with ATI graphics cards. In both the system the desktop
just freezes.

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