Yes, I have encountered the same problem using Gutsy's final live CD in
normal and safe graphics mode.

I've been having an overall poor experience with 7.10 so far. I started
by upgrading from Feisty via the Upgrade Manager, and it failed; then I
tried a clean install with the alternate install disc and got a grub
error 2.

So yes, I'm still having this problem.

-- 
Gutsy beta live CD crashes after boot
https://bugs.launchpad.net/bugs/153097
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