We have a similar problem with an iMac-12,1 (ATI Radeon 6750m/512M) and the 0.31/0.32 kernel [Linux v188.8.131.52]. Switching to the 0.30 [Linux v2.6.37] CORE kernel got the snow issue fixed and it was able to do an image download for some of the partitions, but missed one of the partitions, though we have not managed to watch the error message fast enough to catch what goes wrong with the main Win7 partition.
However, I was wondering if someone could give me hint for compiling a new kernel. I have Linux 2.6.37 kernel source, and fog_0.30/kernel/core.config. I copied core.config to .config in my kernel source tree, and compiled. All goes well (snow-wise), and it uncompresses init.gz, and appears to mount it. However, then it can not execute init and suggests that I use the init= command line. I tried init=/bin/sh and init=/sbin/init but I get the same error. Clearly I am missing some small detail about how the distribution fog kernel binary is generated.
In addition, I wonder if someone could also give a hint as to how to capture the output that Robbace did so I can copy and paste, not meticulously transcribe from the screen (if I can see it, given the snow effect. :-) )
Thanks very much Fog fans.