When you boot the Ubuntu live CD, hit F4 for other modes.
You can then try "safe graphics mode".
If that does not work, you can boot the CD and hit F6 for other boot options. Then hit Esc key to get rid of the pop up window. Then try any of these options:
i915.modeset=0
i915.modeset=1
xforcevesa ###This one should work if everything else fails. See this:
https://help.ubuntu.com/community/BootOptions
And for info on this intel driver problem:
https://wiki.ubuntu.com/X/KernelModeSetting
Unfortunately, this seems to be a common problem with your intel graphics card.
You could also install from the Ubuntu alternate CD. This is a text based install CD that should bypass the graphics problems. You would then follow the info in the second link after Ubuntu is installed.
And welcome to the LQ forums!