I have the same problem, except that in my case it the BIOS was already
set to the internal graphics card.

X seems to restart 3 times, there is some image corruption at the top of
the screen (the rest of the screen stays black), and then everything
hangs.

Let me know if you need more logs.

-- 
xwindow crashed when system start after installed ATI drivers, on lenovo 
thinkpad T400 with both grahic card enabled
https://bugs.launchpad.net/bugs/372641
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