Pretty sure everything you need is in the FAQ and Known Issues (it's the very first thing listed under 12.04) pages. So this is going to be brief.
Xorg that should work with the live CD (not saying it's the best setup and I've never used an iMac in my life):
Code:
Section "Device"
Identifier "Card0"
Driver "r128"
Option "UseFBDev" "False"
Option "NoInt10" "True"
Option "ForcePCIMode" "True"
EndSection
Section "Monitor"
Identifier "Monitor0"
HorizSync 58-62
VertRefresh 75-117
EndSection
You put it in /etc/X11/xorg.conf . Not in your home directory.
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