I'd just like to toss in this just happened to me too.

I decided to take my hackintosh back to Ubuntu. Decided to give 10.10 a
try, but get the same error as everyone else after the first screen
comes up. I've never had issues with my Dell inspiron e1505 before with
any version of Ubuntu (other than the broadcom wireless which I had
switched in the past for an intel wireless card). I'm using the 32-bit
CD image burned to a CD-R.

I just burned another copy to another disc to see how it works, and also
burning 10.04 to make sure it still installs just like it use to

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https://bugs.launchpad.net/bugs/636711

Title:
  10.10 can't mount squashfs file system

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