broken image after upgrading from old version of kali to the latest on an old lapto

Hello, I had an old version of Kali, I think it was version 1.0.9, it was definitely 64bit, which I installed like 2 years ago on my 2007 Lenovo Thinkpad T60, which I'm also dualbooting with Arch Linux and Windows XP. The laptop has a core 2 duo T5600 processor, 2gb ram and ati X1400 128mb graphics, if that makes any difference. I just went and re-installed the latest kali linux 2016.2 x64 (kali-linux-2016.2-amd64.iso) and after the install finished and I removed the usb flash stick and restarted the laptop, the first thing I saw is that the GRUB loader looks a bit broken visually:

http://i.imgur.com/WH8Pjp2.jpg

I first installed the new kali on a virtual machine to check it out before I install it for real, and it worked fine, and the GRUB loader did not look broken like this. But I though, oh well, no big deal, I tried booting into Kali, and, this was the result after it finished loading:

http://i.imgur.com/D0T9mVK.jpg

Completely broken visuals! It is responsive, I can move the mouse and see that some stuff is changing, but it's so very broken. Any idea why is it doing that? And if I can fix it or if I should look for the old version I had before and downgrade back to it?

Looks like a video driver problem. Can you get to a console boot prompt and login?

If not, I'd try installing from the weekly builds at http://cdimage.kali.org/kali-images/kali-weekly/

yes, I can get to the console with ctrl + alt + f2, also I tried live-booting it and it works, so its only broken when installed on the hdd

looks like its some sort of incompatibility between Gnome and the ati driver, installed Gnome on Arch and had the same problem. KDE and Xfce work fine on Arch. I will try to install the Xfce version of Kali now.

p.s. kali xfce works fine