Since fglrx does not installed on live USB, it should not be a fglrx
issue.

I've did a further testing with the same hardware,

By replacing xserver-xorg-lts-saucy 1:7.7_1ubuntu6~precise1 with
xserver-xorg-lts-raring 1:7.7+1:ubuntu4~precise1  then restart X, now I
can load into 12.04.4 live desktop.

Steps:

Boot with live usb or cd

Click on try ubuntu, wait until low graphic prompt

Switch to VT, ctrl-alt-F1

$ sudo apt-get update; sudo apt-get dist-upgrade

$ sudo apt-get remove xserver-xorg-lts-saucy
# ignored dpkg errors message

$ sudo apt-get install xserver-xorg-lts-raring
# ignored dpkg errors message

$ sudo service lightdm restart

Now you should see the live desktop.


** Attachment added: "12.04.4 live dekstop with xserver-xog-lts-raring 
Xorg.0.log"
   
https://bugs.launchpad.net/ubuntu/+source/linux/+bug/1290745/+attachment/4027796/+files/12.04.4_with_xserver-xorg-lts-raring_Xorg.0.log

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https://bugs.launchpad.net/bugs/1290745

Title:
  [Radeon HD 8670A][1002:6660] Unable to load into live desktop after
  clicked "Try Ubuntu"  on 12.04.4 bootable usb drive

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