>2)  The video sometimes goes from normal to reverse video to underline
>    (when not running X).  Should I try a different terminal emulation?

This happens to me also. When I use dt it does not.

>3)  I can't get X to run.  The screen blanks and I get something like:
>    Screen 0 at 0x41ad040, 512 by 342, row B64, fbbase 0x7801040
>    and never get any farther.

I also thought I had a problem, but then in frustration I left my mac
alone with that line on the screen and when I got back X was up.  After
some testing I found it takes about 1 minute for X to come up.  I don't
know if this helps.

-Bill