Hi,
I managed to install LinuxMCE via the 2CD package. I first had the problem that it didn't select the right driver for my video card (installed over plain ubuntu 7.04), so I installed it manually via the ATI packages and prevented changes to the file by usign chattr (the system kept revoking my changes, vesa doesn't really make sense).
Now when I boot, I can see the Video with the instructions for 2 seconds, then it disappears. I can still hear the sound ("When you can see and hear me, use the arrow buttons"), but there is only a mouse cursor on the screen, nothing else.