Don't run away just yet - you are close.
Once we get Ubuntu running, if you still want Xubuntu, you can always install it manually by running
Code:
sudo apt-get install xubuntu-desktop
and switching to it at your next login session by specifying xubuntu at the gdm login screen, usually at the lower left. I don't know why Xubuntu isn't providing a specific Hardy iso, and hope that they aren't going to stop updates for it - this is the kind of stuff xubuntu is made for.
Tip: You may not even need/want a full Xubuntu - from Ubuntu, you could just install the main component, XFCE4, and switch to that at the next login....
Here's a good link on where to download the PPC images:
https://wiki.ubuntu.com/PowerPCDownloads
Back to the main problem though. It appears you might have to manually edit your /etc/X11/xorg.conf file to accomodate the pismo. I'd have to look back in the archive PPC threads - I'm sure I've seen a few.
That fact that you are seeing dmesg lines scrolling by when you do video=ofonly is a good sign, but it appears that once it reaches the gui desktop, X is misconfigured. When the screen goes black, can you get to a virtual terminal via CTRL-ALT-F1 ?
As a diagnostic, you could try installing the older Feisty 7.04 and see how that goes, especially when it comes to the /etc/X11/xorg configuration.
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