That is two snapshots ago

latest snapshot is:
LMCE-1004-20121022131926592.iso 22-Oct-2012 14:15 2800101376
http://linuxmce.iptp.org/snapshots/Now if you get a funky display, press the number button on your keyboard which is appropriate for your output, in your case the number 2, and it should resolve itself.
1: DVI
2: VGA
3: Component
4: Composite
5: S-Video
Q: DVI-2
W: VGA-2
L: LVDS
and after selecting an audio output (analog, coax, optical, hdmi, no audio) if you do NOT have audio, add the following line to /etc/pluto.conf
AlternateSC = 1
press the escape button once, or right click if you have a mouse attached, and it will take you back to that selection screen I just mentioned. Select the audio output again and you SHOULD have sound on really anything.
Please let me know how that works out.