I changed the kernel back to V3 and made an installer too for it.
The ToH emulator (SSE3) won't work on SL in any case so I'll look into fixing the Voodoo one.
I also added a UPX that can pack stuff like firefox (size check and assertion removed from upx packer.cpp).
Don't pack Apple encrypted binaries though (they'll crash on launch if they are not decrypted).
The installer also has a custom install option to install a patched Finder (only do this on legacy 32-bit only systems, for 64-bit use the stock Finder and make sure you boot with -force64) which works with the custom dyld.
I may also integrate the upx packer methods into the kernel (so it patches on AMD the binaries) but it'll need some work.
Well, at least we have a solution for Firefox and so

Work continues...
BTW: The kernel installs into / as legacy_kernel...