I have attached an image of my laptop screen after I upgraded to Ubuntu 12.10 from 12.04. You will notice that all the desktop shows is 3 files. No taskbars or topbars are on the screen. When I start Ubuntu I get an "Internal Error Occurred msg" also.
Any help or advice on how to fix would be greatly appreciated.
I had a similar issue and tried some of the tips on reverting to open source graphics due to my old ATI driver on the 12.04.
Found these commands at this link.
I think there was a message about
fglrx-modaliases
no longer being supported or missing but it still worked for me. Had to reboot after doing this.I was able to get the terminal up from a right click option on the desktop.
Hope that helps.