I am sorry, I haven't seen your reply, I thought you have given up om me. I think I know what is going on here. This card is old Intel 82855, which seems to be supported only as VESA. I think that kernel tries to use Intel driver. I will keep experimenting with FreeBSD, it is easier because there is no live CD.It also crashes on starting X. Going to simply try editing Xorg.conf and set VESA as device. Also going to try vesa_load="YES" in loader.conf
I am definitely getting somewhere with this. I ahve FreeBSD 11 installed. Executed Xorg -configure. The result is just as I expected. DEVICE section lists intel driver for video, instead of vesa. FreeBSD documentation list chipsets supported by intel driver and my chipset is not here. I replaced "intel" with "vesa" in xorg.conf, but it didn't work quite well. There was a blank screen, no window manager started. However, there was no kernel panic and I was able to return to console mode.
There are many confusing things to investigate, like xorg.conf showing two video devices instead of one and some error messages in Xorg logs.