Kernel panic when bootin iAtkos s3 version 2 from usb
 

I am trying to install iAtkos S3 version 2 on my Acer aspire one A0531h
but every time I try to boot I get a kernel panic, see picture below.

My specs are:

BIOS: InsydeH20 Version v0.3104 (I believe it's the latest)
Processor: Intel atom n270 @ 1.60 (2 cpus)
RAM: 1GB
Grafix card: Intel GMA 950 (I know this is supported)
Wireless: Atheros AR5007EG

The iAtkos image I'm using is on a 8gb scandisk usb (since aspire one does not have disk reader)

I've tried using the following flags:
-v -f
-v cpus=1
-v -f cpus=1
-x -v cpus=1

Does anyone know what's wrong here?
Please help.