Ok I think we almost have it nailed down here - My board is GA-P35-DS3L - Gigabyte - now that uses iP965 and ICH9R Chipset now as you said 965 chipsets are a problem and from this post on pslinuxos.com they seem to agree:
http://www.pclinuxos.com/index.php?option=com_smf&Itemid=26&topic=24752.15
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Is it possible that the problem is that it does not boot with NEW 64 Bit machines?
That's the issue exactly. The problem with the 965 (and other chipsets) is the SATA controllers which aren't properly detected.
If you go into the BIOS and disable (Intel) AHCI and make sure secondary SATA/IDE controller (Marvel/J-Micron) is set to IDE, then CD should start. You have to do that every time for CD or poor man's install, even if kernel is upgraded to 2.6.20 on CD etc. If installed onto hard drive by setting up that way, THEN upgrading to 2.6.20 kernel and setting that as default, then install will operate great with SATA fully enabled.
BE AWARE that changing to IDE emulation will change order of boot of hard drives if you have more than one, and the same for enabling SATA again. Be careful to know exactly what you are formatting and installing on!
I've gone over the problems I had - on another thread regarding SATA.
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Guess I will try what this poster says - dont know how to upgrade the kernel though might need some help there - is it doable via synaptic?
Thanks
J