Tested on ATI RadeonMobile 4570
Try this on your org.chameleon.boot.plist:
<string>-v npci=0x2000 arch=X86_64 PCIRoot=1</string>
The -v flag is just for maintenance. I am booting here as 64 bits as you can see. If 64 bits is not feasible for you change the X86_64 part for i386.
Also, check in Verbose if your boot is KP in another item (in this case AppleHDA was KP too)
Use the ATI4600 and all ATiX2000 kext and bundle from 10.7
Use kextcache load on boot manually. *this is usually used if my string on org.chameleon.Boot.plist key for UseKernelCache value sets to No To do that, simply open Terminal on Applications --> Utility folder, input this command as root
- a. Login as root, type : sudo -s and press enter or return. it will ask you password, give your mac user password.
- b. type after you successfully login : kextcache -v 1 -a i386 -a x86_64 -m /System/Library/Caches/com.apple.kext.caches/Startup/Extensions.mkext /System/Library/Extensions /Extra/Extensions , press enter and quit terminal, reboot.
Lets see the result after reboot, if it stuck after reboot and not going into the system, try power off cpu first, and then power back on. if it's also still stuck whether normal boot, verbose boot, save boot, then now you try to make your settings back as usual to make it work fine, and do this second try.
After succeed booting with everything works fine, change your org.chameleon.Boot.plist string for key UseKernelCache to Yes because u mention if you set NO it's always been good. after changing this again to yes, then reboot.
Thats it. i inspect this with trying install Lion in 1 CPU, but dual boot Lion , First lion used for ATI, second Lion used for NVIDIA , both of them is having same os, same hardware , same boot loader except for vga. which is seemly different result in handling.
if all thise trick doesn't help you , perhaps you need to use another driver that support and more stable. as far as i know, if we can install properly at 10.7 - 10.7.1 and driver seems good, my solution is like these two steps. the different is, step 1 is for ATI, step 2 is for NVIDIA
We hope this help :)