After the fix, everything works as expected.
|What doesn't work:|
Booting to the live disc is probabilistic....sometimes you are able to boot normally but majority of times it just hangs to a black screen before the splash screen. Somehow I managed to enter the live demonstration by random button strokes. But the easy way is to add nomodeset to grub boot parameters.
After default installation, the operating system is very slow. Turning on any display effects just brings it down to a crawl. This was certainly not the case with Ubuntu 9.04.
|What was done to make it work:|
I just had to edit the grub.conf file, where I just added nomodeset to after quiet splash. You need to have root permissions in order to edit it, just used sudo gedit path. Below are the steps involved.
Step 1. Type "sudo gedit /etc/default/grub" in the terminal.
Step 2. Add "nomodeset" after the quiet splash and save the file.
Step 3. Run "update-grub" in the terminal.
Step 4. Reboot.
After this the slowness will go away but plymouth gets weird, you are only able to see dots while loading the OS. To fix this follow clem's advice on plymouth (i.e run StarUp-Manager and change its settings to suite you PC).
It is the bug in the upstream release i.e., it also effects Ubuntu 10.04. I also had updated kernal to latest release in Ubuntu, but that did not fix the issue. I think reason behind this issue is because my device is a legacy device.