Thanks Everyone,

It turns out that Madhatter 35 works fine on my Q700 same for
new nubus color kernel (maybe he will release int video version).

The problem was that I was using stuffit with expander enhancer
to unzip the kernels and untar them. Then I noticed they were gziped
and decided to uncompress them on my hp at work...

Voila, Madhatter#35 booted and so did the new color X kernel. 
Madhatter#36, as was indicated in the readme file, did not get very
far...

THANKS Everyone for the help, I am on my way to a full install!


Carlos Soledade