OK. I can now confirm it working, too.
Previous Kernel Panic must have been some mistake when creating install media, so to simplify things, I used iAtkos L1 10.7.1 with just Basic System install this time...



When not using -legacy flag, I still encounter the same problem, that has been described by nawcom on his blog for his Kernel attempts...

It freezes after drive initalisation...

We need to find some way to make it boot past this.

nawcom says something about changes in RTC driver, so maybe we can try to figure out some old kext versions or something, that may gonna make it work...