I've been having the same issue with my desktop.  I've tried livecd's,
usb, and a network upgrade.

My hardware is 
Motherboard:  ASUS M4A78LT-M LE AM3 DDR3 ATI 3000
Processor:      AMD AMD Phenom(tm) II X4 945 Processor 3012.7 Mhz
Video Card:    ATI Radeon HD 5700 Series (5770)
Ram:               4 Gig DDR3 (1600 MHZ)

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[lucid] ATI hd5xxx cards wrongly doing kms?
https://bugs.launchpad.net/bugs/560306
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