kubuntu can't access tty during live-cd / installation

Binary package hint: busybox

I have raised this in the forums as well:
http://ubuntuforums.org/showthread.php?p=3013659#post3013659

Firstly my setup:
- Fujitsu Lifebook S6410P
- Intel Centrino Core 2 Duo (64-Bit processor)
- 2 gig RAM
- 160 gig harddisk (2 * 80 gig disks)
- Windows XP Professional (32 bit)

- Downloaded: Kubuntu Feisty 7.04 Desktop AMD64

I downloaded Feisty 7.04 for Kubuntu and checked the MD5 to be okay. Burnt the ISO onto a CD and then booted the machine with the disk.

It booted okay and presented the menu. I initially choose to check the CD option and got the error below. The second time, I choose to run the installation or Kubunty and got the same error.

Error received

Busybox v1.1.3 (Debian 1:1.1.3-3ubuntu3) built-in shell (ash)
Enter 'help' for list of built-in commands
/bin/sh : can't access tty; job control turned off
(initramfs)

I hunted around and found one option suggesting removing the second harddisk. I really don't want to go down this path. We need to find a solution that allows anyone to install or run live-cd without dismantling their systems.

Let me know any suggestions. I noticed the Launchpad bug details below, so will look there as well.

BTW, I found the following bug report, but it talks about the problem after the installation. Where as for me it occurs when trying to run the live-cd or the option to check the CD.

Thanks
Peter