If I start with --verbose on the command line, then selects 'Try Ubuntu', the 
live session boots correctly. 
That confirms it is not a driver issue. Closing the corresponding task.

** Changed in: xserver-xorg-video-intel (Ubuntu Oneiric)
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/831884

Title:
  lightdm fails to start on Live CD on intel: [drm] failed to set drm
  interface version (plymouth race ?)

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