Cannot install Ubuntu or use Live CD

[Zeouterlimits]

Wish I was making a first post on better circumstances, but anywhoo.

When I try to use the livecd I get as far as the computer telling me that it doesn't recognise my graphics card & monitor, so I choose use low settings for now (I tried configure, but any options I chose just caused strange graphical glitches to appear, and to tell me again that the monitor/graphics card wasn't supported).
It then returns to loading screen (where it details the different things it's doing) but seems to have crashed. I'm able to enter text on screen (in a dos like environment) but I get no response from the computer.

Similarly if I just click the install option at the original boot menu, I load up a terminal (rather than an installation GUI).

My setup:
AMD 64 3200+
250GB HDD
1GB RAM
ATI Radeon x800XT Platinum

Any help would be appreciated.

Edit: Forgot to mention, this cd installed Ubuntu on a laptop a few weeks ago, and I did a disk check (on the boot menu) today which said it was fine

[Pumalite]

Have you tried the Alternate CD?

[Zeouterlimits]

No I have not... must I?

[Pumalite]

It's a text based installer designed to avoid harware/graphics problems.
https://help.ubuntu.com/community/Installation#Installation%20using%20the%20Alternat e%20CD

[Zeouterlimits]

Tried using the alternate cd, but when I try to partition my 250GB drive (setting up a dual boot) it demands I partition 65% of the 250GB, which is far more than which I want to give Ubuntu (a 30GB partition is what I had in mind).

Edit: Reading this (http://users.bigpond.net.au/hermanzone/p3.htm) I now understand it was asking what size I wanted the windows partition to be. Ah. Shall give it another go now.

Edit2: Well here I am typing from ubuntu, just updating from 8.04 to 8.10 now. Thanks for all your help Pumalite.