I have proven the today's live CD build of Feisty (14/4/2007) and I have
get the same error with my two laptops. I have a Macbook Pro and an Asus
laptop, both with X1K series ATI cards. It seems that the LiveCD is not
able to boot up the X server when a new ATI card is present, the vesa
driver cannot handle these cards.

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X does not start when booting from 7.04 beta CD
https://bugs.launchpad.net/bugs/104993
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