Hey guys I have exactly the same problem. I have iAtkos v7 - if I choose any of the two kernels in the customization menu the kernal panic comes up during install. If i leave them blank it installs and when it tries to reboot at the end, the screen goes black and the kernal panics after that there is no booting into the installation - just the disk.
I had an old Kalyway install (just Leopard) which worked fine apart from the wireless (I have the cursed 3945ABG) - which is why i wanted snow leopard cos that mercury group apparently has a driver for the snow leopard releases
Any ideas?
Please