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0e1f616
(Get the code!)
I can confirm that removing splash (or in my case, changing "splash" to "nosplash") works around the problem, as does using "nomodeset". This is on the latest Xubuntu daily live amd64 image, from USB, nvidia GT216. Don't think it's been mentioned before, nouveau throws a dmesg about GPU lockup when I switch to a TTY and try running "startx". Also, apport reports an Xorg crash once the desktop appears (at least when I boot using "nosplash"). Might be related.