Weird behavior of Ubuntu Gnome 14.04 LTS Live Session

Question

I downloaded the Ubuntu Gnome 14.04 LTS (i386) iso file yesterday.

I burned it on a 2GB USB Drive to make a bootable Pen Drive. (I used LiLi for that purpose on Windows)

I booted by the pen drive with nomodeset flag (without that, I only get a blank screen forever).

It successfully takes me to the GUI.

I can open the dash. But when I try to launch an application, say Install Ubuntu Gnome, or Files, or Firefox, or Gedit, some loading thing happens, a few black screens appear and go quickly with some white code written on them, which I can't read as they go off quite quickly. And, I get redirected to the login screen.

There is only one user there - Live Session User. I click on it and use blank password. But again those black screens appear and I get back to the login screen.

My attempts (And how it fails):

• Switching to tty2 console and launching startx (same problem carries on there as well)
• Verifying ISO file (md5 is matching)
• Using different tools to burn the USB (I tried Startup disk creator inbuilt in Ubuntu but same problem, and Unetbootin as well)
• Loading Gnome Classic from Login Screen (same problem)

My System Specs:

Intel Core 2 Duo Processor, ATI Rage XL Pro, 2GB Kingston DDR2 RAM, Intel G31 Chipset (Onboard Graphics are dead), Seagate 250 GB hard drive, with 20GB (ext4) dedicated to my present Ubuntu installation.

Presently using Ubuntu 12.04 LTS (Normal, not GNOME version, but with Gnome Classic installed). Also, I have another WD 80GB hard drive with Windows.

Please help me fix this issue.