Thanks for the info asting, yes one of the live versions I tried was the latest ubuntu, also other versions tried:
backtrack 5 r2
fedora, latest live
as said ubuntu, latest live
even clonezilla!
All of these work well on my Macbook Pro (8,1) which is a model behind current Macbook Pro models.
I have been reading many theories on why booting on the 2012 Air is such a problem, usb 3, graphics chip etc..