I am also experiencing a similar problem on my Asrock P4i65GV (intel ICH5) 
chipset.
I know that in in intrepid and jaunty was necessary to blacklist intel_agp 
module to make that mobo working.
With karmik the only solution to make live CD bootable (and installable) is to 
expand inittramfs and squashfs filesystems and manually modify 
/etc/modprobe.d/blacklist.conf files in both images, (by adding intel_agp) 
recreate fs and the iso.
here attached my lspci output

** Attachment added: "lspci.txt"
   http://launchpadlibrarian.net/35883816/lspci.txt

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Fails to find boot device in Intel D945Gnt
https://bugs.launchpad.net/bugs/290153
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