SeanPF, YOU'RE NOT THE ONLY ONE OUT THERE!! There's at least me...
Well, let me admit up front that I don't have a clue. I'm a total noob, playing first with Ubuntu server and then Zentyal server on an old machine at work... with hopes of learning what to do, and improving my skillset.
I installed the most recent Zentyal from ISO on the site this week, had it up and running in about 1 hour, and was just about to start playing with the GUI, when..... <screen goes blank> then flashes funny vertical bars on the screen (similar to a "align print cartridges" printout) and then alternating blinking cursor. I rebooted, things look fine, I get on average 3-5 seconds with the GUI, just long enough to login, and then kaboom! The screen flashing starts. I began researching it on forums, and your experience is the closest one that seems to match. I can, however continue to reach the Zentyal box through a browser on another machine on the network while the GUI on the Zentyal box has crashed.
The machine I'm using is ALSO an old P4, however only 512MB RAM, and 160GB HD (single drive, no raid config). It's an old Dell GX 280. I just wiped the drive on Zentyal install. So the hardware is NOT up to date, however, my Ubuntu (11.04 32bit server) install worked fine, and I used Webmin AND Gnome with no issues. So I know the exact hardware config will handle Linux with a GUI. I just can't identify the problem.
I have NOT attempted to check the slim/lxdm issue... since I can't get to a command prompt (my blinking cursor is just that... it's not actually a command prompt. Typing anything in at the cursor results in.... nothing.)
So I'm a bit stuck on how to proceed.... since it's just a test box, it's not critical. But I like the possibilities that Zentyal holds for a noob like me to get a LOT more function out of a linux server than Webmin will allow, and all a LOT "easier."
Anyhoo, just know you're not the only one out there with this problem. But unfortunately, you may be the "smartest" one out there that has this problem... that means we're looking to you! ;-}=