I have an intel 82845G/GL intergrated graphics board with a 2.6 p4
celeron. I had the similar black screen with only the cursor working.
This is on both the live cd and a full install. The problem for me was
compiz. I installed using ubiquity as that loaded fine. Then on reboot,
I hit esc on the grub menu, booted the safe mode option. It asks 4
options, one of them is terminal. When at terminal, I entered "sudo apt-
get remove compiz compiz-core" without the quotes to get it to remove
compiz. Upon reboot I am able to log in fine.

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Hard crash entering X with Intel 82845G chipset
https://bugs.launchpad.net/bugs/285250
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