i've just tried to run from a liveusb (latest Pclinuxos KDE 02.2012) created with unetbootin (see repo)
startup by F9
it takes some time to boot up, but is does, screen is slightly misconfigured (1024x7xx in stead op 1024x600) but that is easely fixed.
everything seems to be fine, except for wireless not connecting properly but i think my signal is to weak (just barely sees my network)
could it be that the iso you are using is not the latest, or a custom made one, or a false burn?
you should check this first. and if you try to run live, have patience, it takes some time.
good luck
Fonnie
Hmm, thanks for all that efforts and info.
About Livecd: It is a fully updated version of the very last (KDE). It is a remaster that we used and that works flawless on other machines so I guess there isn't a problem there. We moreover also tried the original installer as now available but with the same results.
As you might have read in my first post on this topic, I also had at times a screen, exactly like you see (a bit mis-configured but it is there). Even when installed (not always though). But trying to correct this, after install, in PCC > configure videocard leads to no screen after reboot..... Even when nothing corrected the screen will be gone after a reboot .... (

)
As for 2 versions, I am aware of that as well and it is the very same model like yours.
So with this xorg.conf file and the rest of the info I might be ready for a new trial. Now see if my neighbor is the same ready (hehehe).