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I've also got similar problems with an SGI 320. I've got it
booting fine on a 2.2 kernel, but can't get a 2.4/5/6 kernel
booted on it. It fails at the same step as you.

Haven't managed to get a backspace character either, but the
factory shipped entry contained one, so I just copied that...

jh (johnh@comp.leeds.ac.uk)