While the i7 does have the integrated intel graphics, it is disabled/bypassed on my y400 at least. I can only see the discrete Nvidia GT650M through lspci. I know there has been confusion about whether these laptops have Optimus or not and from what I can tell, there is no way to use or access the intel gpu.
I'm not sure what options there are for installing Ubuntu outside of the GUI so I can't help you there. I hope this isn't frowned upon and feel free to mod edit if so, but if Ubuntu isn't feasible under this situation, here's the Arch beginners' guide:
https://wiki.archlinux.org/index.php/Beginners'_Guide
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