It sounds like to me the video is not outputting to the correct output. When you press numbers, you are at the AV wizard changing your outputs... the reason you see the login prompt when you do this, is because when you change the output or resolution (using # keys or arrow keys) the AV wizard shuts down (then you see the text console with login) and starts back up using the new setting you specified. Make sure you are selecting the correct output and resolution for your display device using the number keys.
The beeps you hear are indicating to you that the AV Wizard is now up and running awaiting for your input.
The easiest thing to do here, is if you don't want to pull your hair out trying to follow all those directions... just plug a VGA monitor up to the VGA port of your video card, then let the AV wizard run, and you should get video by default on your VGA port.
I've had a computer not give me video at all, on either port, and I had to go back to the # key method to select the appropiate video output.
Don't worry about looking too deep into your problem or modifying xorg.conf directly, it's a simple solution. Just use this guide on how to select the proper output and resolution when you boot up and hear that beeping sound. http://forum.linuxmce.org/index.php?topic=3931.0
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