Fixed!! I used the kexts for DP3 from http://www.insanelym...dpost&p=1837150 installed them using kext wizard, rebooted, and my problem is gone! Apparently the NVIDIA support has been messed up from DP4 on. So reverting back to DP3 kexts works great. I have full graphics support, acceleration is working, everything is perfect.
Hopefully it works for you guys having the same issue as well!
how did you get past the black kernal panic after the gray screen? thats the only issue i'm having. i cannot get to the installer screen..