I too am getting this bug on 7.04, 7.10 and 8.04 Alpha . I also get it
on other Live distros but not with BlueWhite 64 and 64Studio, so figure.

Cristian's comment above about Hyper Threading worked for me! I found
that DISABLING the "HPET Support" option in the BIOS (Gigabyte board,
specs to follow) enabled 8.04 to boot without the error and I see from
the messages that both my cores are activated (unlike when using
noapic).

Specs are:
AMD X2 5200+
Gigabyte GA-M55S-S3 (Rev 1.1) with BIOS F10 (latest as at 13/12/2007) nforce 
550 chipset
4G 800 RAM
nVidia 7300 GS

I'm going to try some other Live distros (Mint 4 and TrueBSD) just to
check that they can load without any boot options as these had issue
before.

Thanks Christian!! Now I just need to see what enabling/disabling HPET
Support does....

-- 
..MP-BIOS bug: 8254 timer not connected to IO-APIC
https://bugs.launchpad.net/bugs/91279
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