The bug have been fixed for i386, but Lubuntu 20120301.1 precise-
desktop-powerpc.iso boots to command prompt on iMac G3 400 MHz, ATI
Graphics.

In this case I think its a problem with xorg and ATI, as the alternate
has similar problem, where the guided, entire disk install completes
successfully, but boots to command prompt. I edited the xorg.conf
device/monitors preferences   and was able to boot to desktop (alternate
install). I filed a bug report on this.

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https://bugs.launchpad.net/bugs/941206

Title:
  Lubuntu 12.04 LiveCD testing

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