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Your ATI Southbridge kernel extension is causing the panics.

 

There are three ways to fix it.

 

Physically remove RAM, boot with maxmem=2048 or install a fixed version of AppleATIATA.kext that works on systems with more than 2-3 GB RAM. If one exists.

 

Read this:

 

http://www.insanelymac.com/forum/index.php?showtopic=127611

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