I have an HP slate 500 with the same Intel GMA500 video card, and it didnt boot the live USB into the graphical mode, linux Mint 12 DVD. Saw all those posts about downloading the correct driver.
What I did was to add at the end of the grub kernel line (shows when pressing tab on the grub selection line), before the "--", the configuration option
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which puts the config VGA 800x600 pixels in the video driver, enough to allow the vesa Xorg driver to boot up correctly. Just hope it's not too late