Hey RedSIngularity,
Thanks for the response , a couple of updates

FIrst of all, The same error occurs during regular installation of 11.04 (from 
a CD, even without WUBI)
The same error DOESNT occur in 10.04 (Installed it yesterday without a problem)

llspci reurns the following in the VGA line
01:00.0 VGA compatible controller: ATI Technologies Inc Device 9488

I'm going to try to upgrade to 10.10 and than to 11.04 using the update
manager and see if this improves the result

Thank you

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https://bugs.launchpad.net/bugs/779125

Title:
  Severer Graphical glitch in beginning of Installation of 11.04 Natty
  (using WUBI, i think also regular though)

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