Welcome to LQ!
Kernel panic usually occurs when kernel doesn't understand something or is confused as something about the hardware (machine).
When CD begins to load press Shift or Alt or Tab (whichever works) until you are brought to grub bootloader; press 'e' and add 'NOAPIC' (no quotations) then press 'b' to continue booting. There are many ways to overcome this type of problem.
Understand what kernel panic is all about, here
is a good reading for that, also here
If you have a quite not-recent (or old) hardware you may try other distros like Antix
which also has a live medium.
Hope that helps.