Having the similar issues here. Basically, using the nouveau drivers,
one HAS to boot with "nomodeset" otherwise you'll hang on a blank screen
or in my case a screen with a couple of colored lines. BUT, nomodeset
practically de-activates the driver and you'll fail DRM and end up with
VESA capabilities. So this represents an un-usable system for many
people (not sure which cards are affected). So what, no more nouveau? or
is there some other workaround I've missed?

And for me, for some silly reason the proprietary drivers fail to
properly recognize my monitor resolutions and I'm stuck with 600x400
which is unusable. I think this is an unrelated issue though.

Background:
http://ubuntuforums.org/showthread.php?t=1613132
http://nouveau.freedesktop.org/wiki/TroubleShooting#Xorg_fails_to_start_with_.22.28EE.29_.5Bdrm.5D_failed_to_open_device.22

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https://bugs.launchpad.net/bugs/952574

Title:
  Ubuntu 12.04 beta 1 won't boot off USB key with NVidia GTX 560

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