Same problem here. 
1) After attempted update (used alt CD) from Gutsy. (ended up deleting Ubuntu 
partition, Dual boot XPpro SP3
2) Tried to run from Live CD., The screen blinks about 3 time (linux boot type  
messages showing). The I saw a blue ish screen wit th "X" cursor for a moment,
Then "Ubuntu is running in low graphics mode"
(Enter)


Toshiba Satellite 1135-s1551
Intel 82852/82855 gm/gme graphics controller
no display information in xorg.conf (could not figure how to save files to 
include from another system)
Xorg.0.log indicates that (Montara-GM) chipset 
BUT it  has entry "Bad V_Bios checksum"
Can not break out to text mode nor will my thumb drive be enabled to save files.

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Ubuntu 8.10 Live CD--Ubuntu is Running in Low Graphics mode
https://bugs.launchpad.net/bugs/279759
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