FWIW, I had exactly the same problem on a dockstar, the only difference being a Linux-3.1.10-16-ARCH kernel. I'd get to the "Starting kernel ..." line, and that'd be the end of it. No further chitchat on the wire, wouldn't respond to ping or ssh. When I pulled the USB stick the dockstar would boot into the default seagate linux. My error turned out to be really sby Jim Snyder - uBoot