I found posts saying log in name is 'xubuntu' and password is empty. This just flashes screen and resets fields. Other names or default sounding passwords result in an "incorrect password" message, leaving both blank resets as well. I checked MD5 SUM and all is well. No answers to similar posts like creating a new user in the shell worked either. Ideas?
Core Duo T2250 / 1.73 GHz / 2GB RAM Mobile Intel 945GM Express
Live USB made with "dd" after the gui tools all failed. Reformatted the drive, double checked the MD5, and made it again with "dd" and same issues.