Infrastructure Software

Oracle Linux 6 DVD x64.
Installed fine. I selected gnome for UI + all dev packages as I will be doing some dev work on the box.
After install it boots okay and the Welcome setup screen shows up. It allows me to setup connection to ULN, create a user, enable kdump etc. These functions work fine, but right after I finish setting it all up (i.e. the last setting I see is the kdump enable/disable screen), the box goes into limbo state after pressing [Finish] button.
The screen turns black and that's it.
Also when I tried to switch from the Welcome setup screen to a terminal mode, i.e. by pressing CTRL+ALT+F1 (tried ...+F2 also) the box gets stuck too. There is no way to go back to the X session, i.e. CTRL+ALT+F6 (F7, F8). It is just stuck on the black screen.

Here's some specs:
Motherboard: ASUS P8H67-M Pro (with B3 revision of Sandy Bridge)
CPU: Intel I5-2500 (VPRO) (BX80623I52500)
Memory: Kingston HyperX 8GB (compatible with m/b + run memtest86 for hours without error)
Video: using built in Intel HD (could this be the issue?)

After re-boot I'm back to Welcome setup screen.

Notes:
1. Boots fine if 'singleuser' is appended to the kernel boot line in GRUB, but that's not the point. I would like to run UI.
2. I have tried removing 'rhgb' and 'quiet' kernel boot parameters to no avail. I have actually stripped the kernel boot line in GRUB down to 'ro' and that would not help either.
3. Ubuntu 10.10 x64 runs fine.
4. Windows 7 x64 runs fine.