Problems with first time install ubuntu

[vosges]

Hello! I am a new ubuntu user and trying to install ubuntu 8.10 on my Asus laptop (ATI HD 3650) using wubi. Every time I try to install, the first time the comp restarts, I get presented with a weird oily like animation, and then a white screen that flickers with black lines. I hit ctrl+alt+backspace several times, and then I can get to a terminal, and do some things like apt-get get install xorg-driver-fgrlx followed by aticonfig --initial -f. Then, I can type 'startx' and it all seems to work. However, when I restart, it's as if I didn't install anything and the exact same problem happens. When I try to install the fgrlx again, it tries to d/l it again (as if it wasn't installed). I tried to test this where I touched a test file in my home dir, and when I restarted, that disappeared too. It's as if every time I restart, it recreates all of the users/folders, etc. Does anyone have any advice?

Thanks!

I followed these instructions to 'fix' my ATI driver
http://wiki.cchtml.com/index.php/Ubuntu_Intrepid_Installation_Guide