I had the same issue. However I was able to start the live-cd/usb by adding the 
following grub boot parameter (using F6):
nouveau.modeset=0

After that I was able to install Ubuntu 11.10, and the installed kernel
boots without problem. However I did select to upgrade during
installation, so maybe the installed kernel version is newer than the
one of the live-cd.

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https://bugs.launchpad.net/bugs/864739

Title:
  Ubuntu doesn't work on HP Elitebook 8560w

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