video crashes - new netbook - HP, dm 1-3025dx, netbook

Video crashes before the live cd can finish booting into a root shell, I can see the bootup process and backtrack 5 logo with a red background, then the screen darkens and goes grey with lines through the top(kinda looks like an old tv loosing reception and static forming). I am using an external dvd drive to install backtrack. I also have a solid state drive that I replaced the platter drive with(don't know if this matters).

I have installed backtrack 5 to an external hard drive and booted this netbook from the drive, backtrack comes up just fine(maybe it is using some fail safe video driver).

It is a newer netbook so I am thinking driver, especially video card driver issues. Any help is appreciated.

Certainly seems like video card to me, too. But it could be the solid-state drive. Have you checked the hardware compatibility list? I suggest doing a forum search using your video card/chipset, and see what pops up. Also, be sure you're using BT5r1...there were lots of bug fixes done. You might also try checking the redmine ticket system for BackTrack, and see if this issue has been reported.