Here's the update:
I tried different things to get past "still waiting for root device". I even tried installing to the full HDD, just to make sure that it was the only thing on there, and still a no go.
So I wonder, if there is something else, in some other kext that is causing a "mixup" of communications. I am not sure...
Just for reference, I used the -x -v idlehalt=0, platform=ACPI and platform=X86, -s, -f (to reload all kexts) rd=disk5s2 (yes my HDD is #5, and this is when I did a partition, and after that, on full HDD, I did rd=disk5s1 ) even set the flags as active.
I even tried a different kernel to see if that was the problem (kernel done at boot).
So if there is any thing else you guys suggest I try, I will be more than willing to give it a shot!

(Oh I am sorry if I sound a bit frustrated in the above lines)
Thanx!
***I have been writing everything down that I do, so at least it's all documentated, if/when I do get it up and running I can at least help others in some direction of the troubles I am going through and provide some help***