Hi davey486, welcome.
I'll try to help with the Docky problem:
1-Right-Click the Docky Button. Choose Preferences.
2-After the settings window is up, click on an empty area of the dock you want to setup, the bottom or the one on the side.
3-The settings window will then allow you to change the settings for that specific dock.
4-Close the settings window, and then repeat the process for the other dock.
About your installation, have you downloaded the 32 bit version? On a 64 bit machine, you can install any of them, but on a 32 bit machine, you can only install the 32 bit version. Also, why type at "boot:"? Doesn't the menu from the live cd show up? It should appear a menu, allowing you to choose what to do, go into a live session, install and several other options.
Please report back, or if you need more help... 
I know I seem like a total dummy, but I did do that. This isn't my first rodeo with docky. I have been using it for a while. I can't get to those optons. That are greyed out. It was a late night, I'm going to try and run it as root maybe I don't have the right permissions or something.
And I have downloaded both, I know a 64bit OS won't work on a 32bit system. But on either of them, I don't get the normal Ubuntu installation screen. I get 2 lines, the first being 'ISOLINUX version xx.xx.xx.x by somebody' the second is a ine that says simply 'boot:' I push enter on either the 64bit or the 32 bit and get nothing but a statement about it not being able to find the kernel. if i type live cd on the 54bit version I boot into the livecd, on the 32bit version, noting but a statement about it not being able to find the kernel. If I type install on the 64bit version, I am brought to the installation wizard. On the 32 bit, noting but a statement about it not being able to find the kernel. I have I have tried waiting, but get nothing. Not just a minute, gone to get a cup of coffe came back, still just the boot: prompt, went to take a shower, came back still the boot prompt, went to do yard work, came back still the boot prompt.