Yeah, I tried doing a full install using an earlier build of the 1.2.1 RC1 software after seeing the thread about the messed up 1429 build. I already had edited the /etc/fstab to reflect ad instead of da. This resulted in an ALIX board that the bootloader would start on, and then say "can't load kernel" yet from the bootloader I can traverse and read from the filesystem where the kernel and boot files are. So it seems like I am missing something, just not really apparent what it is. I have to go get a smaller CF card to see if that isnt the issue.
As an aside, just to make sure the CF card itself wasnt an issue I did a dd of my working 1.2 embedded release on a 512MB CF card and dd'ed it onto the 4GB CF. That 4GB CF works, and if I changed the /etc/platform from "embedded" to "pfSense" and it works ok, but that just leaves me with the problem of how to expand the FS from 128MB to something bigger.
@wallabybob:
I used VMware Fusion 2.0 Beta 2 to run the pfSense-20080822-1429.iso to do a Full Install on my new CF card via a USB reader.
There seems to have been problems with the builds. There are reports (http://forum.pfsense.org/index.php/topic,11129.0.html and http://forum.pfsense.org/index.php/topic,11111.0.html) that the last known good build was 20080820-2342 for an update. In the directory of recent builds it looks as if you will need to go a bit earlier for a full build.
The problem reports I've seen don't look anything like your problem but the reports seem to have been from people doing updates rather than full installs.
I don't know that using an earlier build will fix your problem but from the reports I mentioned its likely your system wouldn't work well even if it did boot so you might as well try an earlier build.
Once you get a kernel to build you are likely to run into a minor problem: I expect the kernel will be looking for the root file system on a da device (e.g. da0) whereas its likely to be on an ad device (e.g. ad0). This is easily recovered by supplying the correct device name when prompted THEN when the system has booted, editing /etc/fstab to permanently correct the device name. (The device name da is used for "disks" connected by SCSI or USB. The device name ad is used for "disks" connected by an IDE controller.)
I've done similar things to what you describe though not through a VM.