Kernel Panic on Live USB Boot

[basblplayr]

Just got a new laptop, a Sony VAIO Y series model: VPCY2190X

This laptop has no disc drive, so I am trying to install 10.04 via live USB. However, I get a kernel panic on every boot. If I just let it go through without changing any boot options, it will just sit at a blank screen and not respond, though the USB drive activity indicator does show periodic activity. If I change some of the boot options, notable 'nomodeset' it will show a boot screen and I can ESC out of that to see the boot text. Booting proceeds normally until the screen switches from white text on black background to what looks like corrupted text, colored, on black background and then enters kernel panic (caps and scroll lock flashing). Has anyone found a workaround for this so that I may partition and install?

Bug reported here: https://bugs.launchpad.net/ubuntu/+bug/605667