It should be able to install at least in your specs since 5.04 is still
a text install (if it were successful it would have been very slow
though) but are you able to try this on a newer version of Ubuntu? Same
result? If yes, we can have this bug remain open, if not we will
consider it fixed. Thanks.
** Changed in: xserver-xorg (Ubuntu)
Status: Unconfirmed => Needs Info
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System hangs during installation while confuguring Xserver-Xorg
https://launchpad.net/bugs/28135
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