I tried 4.0 also, it had the same problem...
when i hit alt-f3, i can see that it says something about trying to access some files in /tmp/ that give error messages about not being there...
btw, i forgot to mention originally that the system is all scsi, so when it doesn't detect the scsi controller it can't even find the cd-rom...
i would really like to run e-smith, but i've run out of stuff that i can think of trying... any help at all would be greatly appreciated...