Hi JBB,
I have nearly the same problem...
I think it is because of the harddisk which is not enough faster for the Peg II (no problem on peg I with the same drive...).
After the first boot, reset with the 3 buttons (control+windows+windows) and you should be able again to stop with esc...
Do not make it with the reset button...!
For me it works like this, hope it will be remove in next firmware upgrade...
Or perhaps it could be possible to add an ide reset during the boot ??
Alsa try bootcreator to easily lunch linux pegxmac ect...
Hope it could help !
Peg4a
Powermac G5
2,3 giga mono processor. HDD : 750 Go sata ATI 9800 XT 256 mo.
Morphos 3.4 ;)