Internal error - uncaught exception

I'm on an early 2008 white MacBook running 10.6.6.
I've attempted a few times to install the preview of Lion, but the installer warns me of an internal error (uncaught exceptions). Dismissing this warning, the install appears to perform just fine. But every time I boot afterward I'm met with a kernel panic before I can get to the login screen.

Has this issue plagued anyone else? I speculate it may have to do with the GMA X3100 graphics card in the machine with, to my knowledge, only a 32but driver.

Any insight or guesses would be welcomed.