Dunno bout your setup, but the most common one seems to be like this:
1 small FFS with only the boot.img, this is the one that has to called from the OF
1 "Workbench" in SFS with all the other files from the MOS-CD, this is the one that turns into sys:.
Note that in this case it is best to uncheck "mount" for the FFS and it is absolutl vital that the SFS-WB has a higher BootPri than any other parttiion.
For me it sounds as if you set a (high) BootPri for the partition with only the boot.img on it, hence it stops at the splash-screen.