Tried following your suggestion (also looked at
http://ubuntuforums.org/archive/index.php/t-1613132.html) but when I
press any key and then the F6 key I don't get to see the menu which
displays boot options from USB live session, just a grey box in the
bottom left side, on which there is a dark grey band that moves up and
down when I press the arrow keys. Even the main menu listing various
options is just a dark grey bar...

Since this only lasts for the given session doing it from a session
running off Intel would be pointless so I thought I'll update the boot
parameters in grub (instructions same post as above)

So I edited /etc/default/grub to include
       GRUB_CMDLINE_LINUX_DEFAULT="quiet splash nomodeset"

But when I tried 
       sudo update-grub                                     
I got
       /usr/sbin/grub-probe: error: cannot find a device for / (is /dev 
mounted?)

So can't get that option to stick either... Any way to update the USB
boot params persistently while using Intel graphics?

Last option I'm going to try and get the latest NVidia driver installed
from the Software Centre working...

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-nouveau in Ubuntu.
https://bugs.launchpad.net/bugs/993907

Title:
  [nvidia GT 240] no desktop after X started

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-nouveau/+bug/993907/+subscriptions

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