I installed in safe graghics mode and it was fine. It would seem the
LiveCD isn't falling back onto metacity on my SiS graphics card
(laptop). So obviously there is a simple workaround of loading in safe
graphics mode, but still this isn't obvious. Maybe the splash screen
could provide a little more info?

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Gutsy Login results in X restarting (therefore putting you right back at the 
login screen) when using LiveCD
https://bugs.launchpad.net/bugs/132207
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