Same problem in jaunty.
Live cd does not boot at all if a video card is connected.
The system boots up only with the on board video chip.
Blacklisting intel_agp module it works fine.
I had to modify squash filesystem image on live CD to blacklist intel_agp.
Same issue on installed system, same workaround.
The bug affects all distributions I have tested, including Knoppix, SUSE, 
SysRescueCD 2 and INSERT Linux and I think it is related to ASROCK AGI (not 
AGP) architecture.

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Kernel Crash on boot (intel-agp problem)
https://bugs.launchpad.net/bugs/53007
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