When I reinstalled sme5.6 I had the same problem.
The kernel panic was due to a difference in the
amount of ram that was available, and the amount
that the default instalation was claiming existed.
Real strange in my book. However, if you
do a search on the site using kernal panic
as your search key, and insure that all
previouse dates are selected in the drop down
menu, you will find the post that tells you
how to eliminate the error when installing.
My guess is that the you may have some
faulty ram, or the file is corrupt in some way.
In any case, I would start to look for the file
that tells the os how much ram is available.
I'm no expert, real raw with sme. But it does
stand to reason that if upon installing the
server, one can get a kernal panic simply
because there is more memory than what
is specified in the configuration file, then
this would be the first place to look.
I can't tell you what files to look in, I'm way
to green and can only go based on my little
experience and some logic. And of course,
being logical doesn't necessarily mean I'm
going in the right direction. But it is a start.
Have you tried the reinstall disk? But then,
that may not be to smart. Like I said,
I'm to knew at Linux and SME to give you
a whole lot of direction.