I had a thread jack going on over at ps2-dev, but I think I wore out my welcome as my issues are more linux related then dev related (ok, it wasn't dev related at all). Anyways, here it is:
I finally got my linux going thanks to help from a few guys there, using deba5ers base and user/local packages, mega man's klauncher 2.0. I have a V7 console, use Free McBoot 1.8, and component video on my 720P HDTV. Everything works on these cables except linux and snes station. After hashing out some switches in both klauncher and the win3 script, I got resolutions about handled (some resizing and alignment needed, need help here too) and everything is PINK from kernal launch to fluxbox. They're out of ideas/patience, and they don't use HDTVs and/or components, so they can't offer much more help then what SHOULD be working.
SO, in the end:
Component video (pink picture)
Klauncher is set crtmode=dtv2
win3 is set dtv,720p (pink and off center about 6 inches left)
Everything else runs fine, not the TV or console or cables, snes station runs until a game launches, then it flashes alot, but still works, just makes your face explode.
I tried the RTE SBIOS (not really needed but one more thing tested) and it fails to launch the kernal, so its not being used.
Also shows up pink on a 1080P LCD HDTV at my brother in laws house, still pink.
I installed using mega man's kloader 2.0, his initrd (the one marked for general usage) his devfs kernal, deba5er's base and usrlocal packages. Normal running has kloader on MC0, mega man's fat_and_slim_v2 kernal also on MC0. USB isn't required for anything outside of booting with an initrd. HDA1 is swap, HDA2 is root. Linux runs and boots fine, its just pink and off center.