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scratch that, sorted it out. Found this thread
https://answers.launchpad.net/ubuntu/+question/9760
changed the drivers to 'nvidia' instead of 'nv' and it works fine now.

followed the instructions for 1.1 rc1 but when MCE used nv drivers (have a geforce 7400GO) I get a strange grey screen with white dots and can not get into desktop at all.
I reinstalled but it happened again when I auto detected the drivers. Really dont want to reinstall again. is it possible to set the graphics driver back to the default from the recovery screen?

HP dv8000
1gb ram
geforce 7400GO (256mb)
freecom dvb-t