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I struggle with this for days, what solved my problem was entering the busratio for my cpu My cpu being an i5 460M I typed (instead of -v) 'busratio=19' and was good to go, I unfortunately have to type this every time I want to log in to OS X Hope it helps.
Got mine to work!! Instead of -v or cpus=1 simply use 'busratio=19' - it's the ratio for i5 460M Hopefully this will help you. If you can get yours to work can you please tell me if your internet works and/or how you got it to work. I have no idea how to use the following guide http://www.insanelymac.com/forum/index.php?showtopic=51725
I have the exact same laptop as you and a very similar problem - mine restarts immediately after apple logo's first appearance, regardless of the method I try to install it with (have to have tried at least 10 by now) I tried to install it on some 'much older' laptops with the exact same problem so I doubt it's a hardware incompatibility issue. Have seen on couple different sites users who have recommended an update to the latest BIOS to ensure smooth installation. In the ACER 5742Gs case this would be the 1.16 version I think where as it ships with 1.05 so there should be a notable improvement in software so it makes sense but I don't want to resort to high risk things without completely exhausting all options. Don't think warranty would cover broken BIOS chip!!! Soory if this is a double post but I couldn't see my earlier reply.