New information for my case, which may have sort of solved itself, but maybe not. The system does not work, as above, with my GeForce 240 installed. However, removing it and using the onboard video ports, even though they are together with the unsupported "HD graphics" of the Celeron processor, I get through the installation process. That, unfortunately, is as far as I get with the onboard graphics, or with the GeForce 240 back in, or with either of those with any number of start up flags (GE=no, PCIRootUID=0, etc). Verbose mode still flashes past too fast, even watching it with a camera and then going back frame by frame.
So I've managed to install, but now get grey Apple screen, spinner, then blackness. Do I have to shell out for an i3-2125 to get HD3000 graphics, or a new graphics card? Has the 240 been dropped by Mountain Lion?