11.10 - Which release should I install, given my system specs?

I'm new to Ubuntu and am trying to run something better than 10.04. I have a Toshiba with the following:
1gb ram
1.86ghz processor
ATI mobility radeon 600x.

I was wondering which version I should use and if I could update something in the system to make a newer version work. I have booted 11.10 successfully twice but it usually gets the background image after the log in and stops, both from installs from wubi and a live cd.

Is there a good update for a graphics driver I should use and what would boot better, a live cd or wubi?