Can you see if this issue also happens with the latest daily image?  It can be 
downloaded from:
Desktop
http://cdimage.ubuntu.com/daily-live/current/
Server:
http://cdimage.ubuntu.com/ubuntu-server/daily/current/

** Changed in: linux (Ubuntu)
   Importance: Undecided => High

** Tags added: kernel-da-key

** Changed in: linux (Ubuntu)
       Status: Confirmed => Incomplete

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https://bugs.launchpad.net/bugs/1626332

Title:
  Ubuntu MATE 16.10 fails to boot with linux-image-4.8.0-11-generic
  kernel on PowerMac G5 7,3

Status in linux package in Ubuntu:
  Incomplete

Bug description:
  Tried to boot todays daily Yakkety iso on my PowerMac G5 7,3 which failed:
  "Unable to find a medium containing a live file system" (see photo). Same 
problem also for Lubuntu's daily Yakkety iso.

  The same iso boots however on my PowerBook G4 5,6 + 5,8.

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