I can also confirm this with a MacBook 2,1. The difference is that when
I boot the Live CD, I can actually get to the desktop. I've tried both
an update from Karmic and a full install from the CD (without booting to
the live CD). I'm now trying a full wipe and install from the liveCD.

Interesting that I can boot to the LiveCD without incident...would not
the files on the CD be the same as those installed?

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[Lucid] Blank Screen after login
https://bugs.launchpad.net/bugs/531556
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