Okay, today I checked my MacLion partition for DSDT.aml and didn't find any in the root. So I copied one to the root from my 'MacOSX Base System' USB drive (same as your 20110720 version). I also re-installed Chameleon RC3 v5 with theme. Now when I boot I can see the GUI and focus on hdd MacLion partition. However, I'm still unable to boot into MacLion (and getting stuck at ':/ root#' when booting using '-s -v cpus=1'). Booting into MacLion using USB drive is still working fine.
One observation during verbose boot directly from HDD, I see the kexts getting loaded from [hd(0,1)/System/...] partition, however when I boot from USB drive, I see the kexts getting loaded from [hd(1,1)/System/...] partition. This doesn't seems to be correct. Could you help me with this?
Few more lines prior to HDD boot freeze:
If you want to make modifications to files:
/sbin/mount -uw /
If you wish to boot the system:
-s flag triggers a superuser mode and you are actually seeing its proper output. Why are you booting with that flag and what are you expecting to achieve by it? Why use the cpus=1 flag? Also, what is in your USB/HDD org.chameleon.Boot.plist? Is there a Default Partition string in it?