Hi,
no. executed memtest86 from lilo -- not as payload. as i sayed, the payload code is not executed / not reached. linuxbios seems to stop in c_start.s and it never reaches src/arch/i386/lib/hardwaremain.c (i think so, because there are some printk's in harwaremain which i never see on the serial console).
You probably want to copy the 0:00.0 pci register setting to the raminit.inc. Most likly is the memory bank/type causing the problem.
-Andrew