Try disabling DRI and see if it helps. For how to change xorg.conf on the live 
CD before X starts, see https://wiki.ubuntu.com/EdgyKnownIssues/59618
Add the option
 Option "DRI" "off"
(and of course do not change to vesa like in the wiki instructions).

What's the PCI ID of your card? lspci -vvnn|grep "VGA compatible"

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[RS482] hang while starting up X on radeon 200M
https://bugs.launchpad.net/bugs/139241
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