I have been playing with this for some time. Let me describe what I have learned, even though it does not actually provide any solutions.
I have a PD3 installation that when converted to PD4 fails at exactly the same place as osjunkie's.
I followed the instructions by John (above) to create an installation in PD4. It boots with vtx enabled. I installed the developer package and upgraded to patch 4. It still boots with vtx enabled. BUT. When I switch to the Vesa 2 video driver, it stops at the beginning of the boot process (at the power management part) unless I disable vtx. But then it proceeds to exactly the same failure at loading mach_init. It appears that the failure is related to switching video drivers since I can reliably switch/fail, switch-back/succeed. But we also have Peter's post above with screenshots with that driver running. So what is different? Do those that run not have the developer package installed? I have switched this installation from the IDE driver to the EIDE driver and back again with success, even though I could not install with the EIDE driver directly.
So I now have an installation that works with vtx on and fails with vtx off, but with a little screen in black&white. If I try to switch to a reasonable display, it dies exactly like my converted from PD3 installation dies, i.e. early with vtx on and later with vtx off.
Another curious observation: I tried installing from CD with vtx disabled. That failed with the attempt to load mach_init ... from the CD! And I'm pretty sure it isn't trying to use the Vesa video driver. I also tried using the EIDE ATAPI driver for installing and that also fails.
As an final note, I also observe that PD4 installations seem to run at less than half the speed of PD3 installations. It may be faster with vtx disabled but I haven't gotten far enough with that to say for sure. One would think that things would run faster, not slower, with vtx enabled.
Any other information would be appreciated. I'd particularly like to know about video driver success with/without the developer package installed.
- David