I have a i965Q card as well and I have the same problem as the bug
reporter there.  My problem can also be worked around by adding
'nomodeset' in the kernel setting.

As Geir Ove Myhr suggested:
I downloaded and burnt a copy of:
lucid-desktop-i386.iso with marked date: 24-Feb-2010 19:10

I get a blank screen and the computer reboots.  Unfortunately I cannot
provide more info.  Also the intel driver fails to detect dual monitor,
I wonder if this has something to do with it.

-- 
[i965q] screen resolution only "sees" 640x480 and 800x600 since Karmic fresh 
install
https://bugs.launchpad.net/bugs/470224
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