It works. since you are able to run asbestos installer just fine it seems and your problem comes after using the lv2patcher the problem could be your usb drive.
it sounded like you are getting stuck at the penguin screen. This happened to me although on fat ps3. I was using a 1tb external so I switched to my 2gb usb stick and everything worked just fine.
1.3 has also just came out and it says that if fixed problems with incorrectly partitioned USB disks. So even though it should be properly partitioned it could still be a problem
Code:
http://www.*************.com/2011/02/08/ps3-homebrew-asbestos-v1-3/
console - spot
stupid censoring
there was a nice thread on here before the server upgrade. Many people said they got it working on both systems but the forums was brought back up with an older back up before that thread was created.
so please don't dis stuff just because YOU can't get it working. There are many other ps3 sites then just this. Do research, look around, read, try other stuff.