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I have created Ubuntu 12.10-amd64 bootable usb disk.

It boots but when I select Install on harddisk or Run without install, it just stops at the splash screen.

I tried -nomodeset, but same thing happens. I removed splash from command line. The setup stops at Stopping save kernel messages.

Does this have to do anything with ATI graphics?

I've ATI 4000x series.

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try noacpi or acpi=off(as a last resort). Also what are the messages before Stopping save kernel messages? –  Web-E Nov 20 '12 at 10:16

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