The color squares issue sounds sort of like bug 127101 or 127008, both
of which are fixed since -beta. Can you please test against gutsy-final
and reopen if the issue is still present?
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: New => Fix Released
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[gutsy] Text Installation failed - 2 reasons: encrypted+lvm fs, screen font hang
https://bugs.launchpad.net/bugs/147837
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