Can confirm that this bug is NOT present in 11.10 oneiric LiveCD.

I figured out some way to work around the original bug in Natty LiveCD,
involving turning off TV out interface and configure monitor via cli.
Unfortunately I didn't document the exact process.

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https://bugs.launchpad.net/bugs/725116

Title:
  Garbled desktop LiveCD 11.04 alpha2 HP Nvidia 7150M

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