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a further update - i seem to have fixed the hanging issue by doing two things.

1. i updated my bios (which may or may not have fixed the issue)
2. i found some information at http://ubuntuforums.org/showthread.php?t=435075 which seemed to sort out my problem.  i added the following bootup parameters : pci=nomsi irqpoll noapic acpi=off

Ok, so here is the scenario.  I have Windows MCE 2005 running great on this setup, but I want to move to LinuxMCE.  I boot using the 7.04 Live CD and everytime about the third step in the install process my machine locks up and stops responding.  It is a good 7.04 Live CD b/c I installed Kubuntu on my laptop using to test it out.  Does anyone have any idea why this is happening?

I have exactly the same problem.  Originally, I thought it was hardware related - tried new memory, reseated motherboard/memory, tried new power supplies, drives etc.  Both the kubuntu live cd and automated dvd gave the same problem - hanging or random reboots.  Then I tried the kubuntu-7.04-desktop-amd64 version instead of kubuntu-7.04-desktop-i386 that is described throughout linuxmce website.  That seemed to get rid of the hanging and rebooting.  Unfortunately, from what ive read, linuxmce only works with the i386 version.

I have exactly the same CPU.