I have an almost identical problem with a desktop machine using an ATI Radeon 
X850.  The last line I see before the screen flickers a couple of times is 
* Starting periodic command scheduler crond [ OK ]

Every few times there is a solid green line on the top of the screen
instead of it being completely blank.

I've tried both AMD64 and i386 versions.  I have an AMD64 X2 processor

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fails to bootup ati hd 2600 asus f8sa-x2 laptop
https://bugs.launchpad.net/bugs/206075
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