Figured out that it is the internal GFX (intel i915) interacting with the PCI-E 
(Nouveau). I can prevent this happening on the installed system (10.04 + 
2.6.38) but killing/renaming the i915 module. At which point it boots through 
to X.
--
$ cd /lib/modules/2.6.38-020638rc8-generic/kernel/drivers/gpu/drm/i915/
$ sudo mv i915.ko i915.ko_hide
--

Not sure how to achieve the same with a LiveCD. Suggestions?

I am unable to disable the onboard GFX in the BIOS,
Simon.

** Summary changed:

- Natty Alpha3: Nvidia GeoForce8400 Crash on Boot
+ Natty Alpha3: Nvidia GeForce8400 + i915 = Crash on Boot

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https://bugs.launchpad.net/bugs/741434

Title:
  Natty Alpha3: Nvidia GeForce8400 + i915 = Crash on Boot

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