Do you have the kernel-power packages (at least kernel-power-modules) installed on your device? Even if you extracted pali's kernel image to /boot the kernel still needs the modules in /lib/modules/2.6.28.10-power49 to work correctly. Same thing with the 2.6.28.10-power49+pre50 image (but I don't know where to get the modules for pre50). Edit: If the kernel-power-modules package depends on kernel-power-flasher you may have to reflash the u-boot kernel by reinstalling the u-boot-flasher package.