First of all, there is no version 2.04 of Ubuntu. I'm sure you mean
8.04. Or are you talking about the x.org intel driver which is version
2.4.0?


1) The graphics chipset should be supported in Intrepid Ibex. I suggest you try 
that out. Alpha 5 can be found here:

http://cdimage.ubuntu.com/releases/intrepid/alpha-5/

2) When you boot run in single user mode, the network should still be
functional. What does "ifconfig" tell you?

-- 
Intel x4500HD (GM45) and ubuntu installation = graphic failure's
https://bugs.launchpad.net/bugs/271059
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