Hi satovey,
I also have a homebuilt with Duron 1000. I was getting the same Kernel Panic errors whenever I would try to install SME 6. I also had Kernel Panic errors with other versions of Linux that where using a newer Kernel, 2.4 I think?
I gave up and decided to continue running SME 5.5 cause it runs great. Unfortunately it limits me to using some older scripts for PHP and Perl.
Ron 
I found a workaround. I have a p233 which
I used to install the 6.0.1 on a 2 gig drive
then transferred it to my 650 duron machine.
I then created a reinstallation disk wich didn't
work. Googling around I found the syslinux.com
site. I then donwloaded current 2.10 version of
syslinux and installed it on my win98 machine. I
then inserted the reinstall disk and ran the
"syslinux a:" command. The system would then boot
from the reinstalation disk and I could
install the system using this method.
I checked the boot disk that you create while
installing the system, and it will not boot
the system unless I run the "syslinux a:"
command on it using my win98 machine.
So if your realy wanting to install the 6.0.1
release this is the way to get it done.
I think I am going to backgrade to the 6.0
version. In November when I 10 gig drive died
being a few years old I installed 6.0.1
onto a 20 gig which was also a few years
old. That drive died on the July 7.
Today, just now, the 160 gig drive I
purchased to replace it died. The bios
wont even recoginize it. That realy sucks.
So I'm not sure if all of this drive crashing
is from a bug in the 6.0.1 version or not.
So I think this time I'll install the 3.0
final to see what goes on. If it happens
again, I'm dropping back to 5.6 as I had
that running for about a year with no probs.
So you might want to re-think the 6.0.1 release.
There however, isn't to many complaints with it,
mostly due to backup issues, and I'm not sure that
6.0 is any less problematic in that area.
My main reason for going to the 6.0 was to
move the primary ibay to the ibays folder.
However, that can be done by simply moving
it there and creating a symlink to it from
it's original location. That's all that was
done to achieve this. And this process should
be done prior to running the upgrade from 5.6
to 6.0, as the difference causes and error
when doing the install.
Hope my suggestions help.
S