I have great news!! I was able to get sabayon 5 'X' system to work!
I wasn't able to pass the boot argument (about the xdriver) to the system. I don't have the live dvd style boot up since i'm using a unetboot/usb type install/boot. I'm sure i could've if i had spent a little more time on it.
Instead, i re-downloaded the iso and the md5sum and checked them. Good iso! Then i formatted my usb stick and re-loaded the Sabayon 5 Gnome 32 bit iso on it. Put it in the slot and...
I was ALMOST heart broken but not yet about to give up. I tried safemode from the usb stick. Yet again, it worked to get me into a graphical/familiar environment.
From there i was EASILY able to get my wifi initialized and logged in for internet access (nothing different there either)
After that, i tried to do an install from the "install gui" on the "safe mode" desktop (didnt think of trying that option before). Since i was already connected to the internet i decided to update the installer first.
EVERYTHING is working great! The install was a SUCCESS!!!
I am updating the rest from inside my sabayon 5 gnome system as I write to all of you. I don't know if this is a fix for the problem, but it worked for me and i decided to tell everyone just in case it helps someone else.
I can "re-create" the issue if needed and get the output of those files sometime if it might be helpful to the programmers. The standard install methods on the iso STILL give me the same negative results. But as for my computer, MY problem is solved somehow.