Hi Darez,
Your problem is the one discussed here:
http://forums.gentoo.org/viewtopic-t-558277.html
The Live discs don't contain any ATI drivers, for whatever reason. You'll have to edit your xorg.conf file to use the VESA driver instead. See the thread above for details.
I know the Live DVD contains many, many different desktops. At the login screen (once you get X running), hit "sessions", I believe, to see a list of options. I don't remember about the Live CD, though, but you could check.
-Sargon