Same happened to me on a satellite S1800-700 when upgrading from 6.06 to 8.04 
with update-manager.
I could not start with Live CD on this machine also.
I could solve it adding "NoDDC" on installed version.

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[Hardy Alpha-3] xserver-xorg-core /usr/bin/X goes into infinate loop on Toshiba 
Satellite 1800 PS181C Trident 
https://bugs.launchpad.net/bugs/181176
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