Here is what I did:
followed tutorial in link above. When I rebooted after install I used nawcom boot cd instead of the one they gave. Followed tutorial from then on. Did not update yet. Had to instal realtek kext to get internet working. Updating system now.

Updating did not work. Even after legacy kernel. Gave me same error I was having before. I am going to keep it as 10.6.5 because it works perfectly fine WITH full gpu support. I wish I could software update to 10.6.7 but it is just not working for me. If someone knows of a solution please let me know. Thank you.