The problem is in nouveau (experimental) driver.

Install Ubuntu from alternate CD and boot to text mode and uninstall
these packages: nouveau-firmware, xserver-xorg-video-nouveau and install
nvidia-current package.

My old Nvidia GeForce 4 MX 440 works fine.

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https://bugs.launchpad.net/bugs/763052

Title:
  Ubuntu 10.10 can't boot on nvidia GeForce GT240

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