Ubuntu 10.10 USB drive does not boot Toshiba netbook

I recently bought a Toshiba NB 305 with Wondows 7 starter. I was going to try Ubuntu 10.10 on it using USB drive. But it did not work though I tried several times. When I restated the computer and selected boot from USB drive, immediately the system gets into a loop with the message:

graphics initialization failed
Error setting up gfxboot
boot:

I exit the loop by pressing Esc key and the system boots to the windows. I would appreciate a solution. Thanks -

Solution:
 Based on the last suggestion, I downloaded Ubuntu 10.04 and I made an image CD. I used the CD through an external drive to boot. It worked - thanks for the help. Now I use Ubuntu instead of Window 7, though I am going to keep it as a back up for some time. Moral of the story: current version of Ubuntu 10.10 does not work with Toshiba N300.