Daverto,
Had a similar problem. I found that if I wiped the hard drive with "Dariks Boot and Nuke" program that IPC installed fine with no kernel panic. My first installation was with a clean hard drive and I didn't have any problems. When I tried a reinstall I had kernel panic. I had the problem with Mac not formatting and always it was a matter of wiping the hard drive with boot and nuke. I tried other things but nothing worked but that program. I had the same problem with iDeneb.

Mac format would not work. Nothing worked to wipe the hard drive and stop the kernel panic but the d-ban wipe named Dariks boot and nuke. I downloaded a the Ultimate CD from the internet. It had lots of useful stuff on it.

I learned that if I wanted to save time with the hard drive wipe, I just did a quick wipe with d-ban and quit after it got to 10%, which is about 20 minutes. This stopped the kernel panic. If I wiped the whole disk it took me 3 hours. As for the rebooting that might be a different problem. You might have two problems instead of one.

I hope this helps. I see your post is from several months ago. You may have solved this by now.

I have an HP d7 1260us Pavilion laptop that I installed Mac on but it was Ideneb. I got everything working but the Atheros 5009 wireless driver. IPC has a 5007 but that won't work for me.

Let me know if this helped. Good luck.