just wanted to say was able to install Lion 10.7.1 on the S10-3 using Iatkos and boot flags "mach_atom arch=i386 and -v" (no quote marks).
simply boot (with above boot flags), install.
on first boot after install
plug in usb keyboard and mouse
use boot flags "custom arch=i386 -v" (no quotes)
and wala! it worx; wifi doesn't (use usb or switch card).
after setup should be able to unplug keyboard and mouse.