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Ubuntu 11.10 - Black screen with blinking cursor on boot

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http://askubuntu.com – Specs: Intel Atom 270 Intel graphics 1GB RAM Packard Bell version of the ACER Aspire ONE The Netbook in question has had Ubuntu reinstalled twice because of this issue. The OS would always work fine for a week or two, then missing directory errors would appear ("Cannot find /tmp" and the like) eventually leading to the black screen/blinking cursor problem when starting up. The recovery mode will not boot either, but Windows 7 on a separate partition is fine. I've been following the steps from here: http://askubuntu.com/a/88165 and am stuck on step 2 as Ubuntu will not boot. There is a picture (HowTos)