I dont know why you guys have a problem with r21 kernel on collie.
My collie has OZ 3.5.3 installed after it was released, updated with upgrades and I just flashed r21 kernel and started machine. All works ok. No hangs during startup, no Big Red Warning message - just like it has to be.
If I find some time then I will backup whole machine and try to reflash kernel (r21) with opie-image and post results.
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I know well that this situation is very frustrating...
The worst thing for a developer is a software that works fine on his system but not on other systems.
So I have a proposal, Hrw could release a new zImage with a "verbose debug" mode on, something that could print out useful informations to understand the problem.
I have studied linux kernel this year, but I'm not a kernel hacker, and I have buyed my Z recently, so I can't give a big help... but I (and I think everyone here) would give an help to solve this problem, also just testing if this is useful.
My nights are at OZ disposal