kernel hang at Starting Kernel... compiling using default config

Thank you everyone for the responses. I figured out the problem with my build. It was indeed as pastoreerrante suggested that the toolchain is the problem. Using the codesourcery 2010 worked for me and the kernel builds and boots correctly. This is very weird to me! I’m also switching to 2.6.37 for the wifi support and will also try out the angstrom toolchain.