OK, I gathered some more information about my Dell XPS 8700 and OS X last night. I finally achieved great success installing 10.9 Mavericks after using an unmodified Kernel compiled from the original sources. This kept the computer from rebooting over and over again.
You'll still need to make a USB installer stick using a 8GB or bigger thumbdrive. Use Pandora or MyHack to do so. After it's finished with your thumbdrive replace the stock kernel with the recompiled one. Your thumbdrive should now boot into the Mavericks installer (using the -x kernel flag at boot up).
After making your installer you'll need to dive into 8700s BIOS and change a couple of things for OS X to install and run. Turn off Secure Boot and enable Legacy instead of UEFI. Save your settings and reboot into the installer.
Keep in mind you'll need a smbios.plist, com.boot.chameleon.plist, fakesmc.kext and the
null power management kernel extension (didn't need the null power extension after all), these will most likely be created or included by Pandora or MyHack. The proper mac model is iMac14,2
I also figured out the network and sound drivers. The network was a pain in the ass considering it's a fairly common chip set (Realtek RTL8111). The soundchip is a strange Realtek used only in this machine, luckily the ALC898 drivers work with it. The bluetooth module works but the wireless network does not.
It was late and I was sleepy when I was working on this project. I did a really poor job of documenting where I found the drivers and who created/packaged them. I mean NO DISRESPECT to the packagers/authors and I'll post links to the sources as soon as I can find them again. Below are the kernel and drivers i used.
Sound - https://www.dropbox....udio_ALC898.zip
Network - https://www.dropbox....8111-Binary.zip
Kernel - https://www.dropbox....mach_kernel.zip
Patched Vanilla Kernel - https://www.dropbox....nel_patched.zip
I used Kext Wizard to install the kernel extensions.