Hi linux newbee back again. well I got it sorted and have now got sabayon 3.4e running with all the graphics looking so very cool. Solution was so painfully easy once i found it. Simply when loading sabayon from dvd press F5 at the selection screen and just enter this line after the -- at the end of the original line leaving a space after the -- xgl opengl=ati res=1280x1024 noacpi
spaces to be included as above then just hit enter and it in my case loaded sabyon3.4e at normal ATI res and not at the extreme res it sets by default.
Hope this proves usefull.
tested on a sapphire x1650pro 512mb agp card
This command can be used for all options from the dvd boot menu as far as i am aware.