I am experiencing a similar problem, also with an ATI 9200. LiveCD hangs
on startup (I only can see a big white square). It gets solved adding
the "xforcevesa" option.

When I install it, it dispays KDM login properly, and I can even start a
session in failsafe console mode. But when I start a normal session, it
shows the splah screen (without the messages, just the graphics: no
fonts), and then the big white square. Sometimes it appears what looks
like the edge of an enormous font. This makes me think the problem has
something to do with font rendering.

If I login in failsafe console and select vesa screen driver, it works,
but obviously I cannot take advantage of the graphic card's features.

I can help posting the logs, if somebody tells me what log can be
useful.

Best regards. Juan.

-- 
Kubuntu Hardy 8.04 live CD (and install) hangs during boot
https://bugs.launchpad.net/bugs/221329
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