Which Hardy LiveCD do you have tested? According to your log the vesa driver was used which makes sense because of the safed graphic mode so the Intel driver could still have this issue.
What happens if you just start the LiveCD with "start or install Ubuntu" without changing anything except the keyboard or language?
Which Hardy LiveCD do you have tested? According to your log the vesa driver was used which makes sense because of the safed graphic mode so the Intel driver could still have this issue.
What happens if you just start the LiveCD with "start or install Ubuntu" without changing anything except the keyboard or language?