Your Xorg configuration is not starting, because it is trying to drive a video card that's not available. I found that out after rebooting and then first selecting another (safe) video mode. You need to use the 2 CD distro, then use the techniques as in
http://forum.linuxmce.org/index.php?topic=3368.0I have used Linux since 1993 (kernel 0.99 patch level 12) in various flavors, and X is still the biggest obstacle for Linux getting mainstream on the desktop. Has nobody learned anything since OS/2, with it's minimal device drivers, have we not been able to hardware detect in such a way that this does not happen? I fail to see progress and I am not totally Linux newbie, I am at the verge of giving up.
I do have it working now on my Sony 26P3000 LCD TV VGA port (still no sign of DVI support though), after reading and rereading the 1-2-3 method. I still don't have the LinuxMCE cd's installed, only basic Kubuntu so far.
Let me know if you get it installed.