sorry guys ..had to put on the feed bag..
1 ..this is not a lappy.. its an old compaq small form factor..
2 ..live cd runs without a problem.. installs fine..
3.. after I install and using the generic video driver .....no problem..even installing the 71xx driver and not updating it works.. its after I update..after reboot..shut it off and later starting it that this happens..
Regardless of laptop or desktop (or form factor), the Live CD is an awesome troubleshooting and recovery tool.
Out of curiousity, are you doing any shutdowns prior to your updates? Just curious what happens if you did a complete power down cycle after each step:
1 .. Run Live CD, install, shut down.
2 .. Power up, install 71xx, shut down.
3 .. Power up, update, shut down.
4 .. Power up,

Does it still hang only after the updates?
(Bear in mind, also, that the updates are probably in something of a "state of flux", as the tool chain is completely re-worked for a final 2010 release...there may be a particular update that doesn't currently agree with your system. As this is a rolling-release distro, you won't be able to update to some previous point in time. If that is the case, you might want to hold off updates (unfortunately, this approach would require that you periodically apply them as tests) until the offending update passes, or has adequate support through other updates)