I actually got Kalyway installed all the way inside VmWare 6.5 on my Linux box. I rebooted and got the b0 error. (0 is a zero) I looked it up and found this:

Reboot the VM and boot into the DVD. Tap F8 to get to the boot prompt. Enter '-v -s' (without quotations) and press enter. At the prompt, enter 'fdisk -e /dev/rdisk0' (without quotations) and press enter. Now type in 'print' (without quotations) to get a list of partitions. Find the partition you installed Mac OS X on and type in 'flag <partition#>' (without quotations, replacing partition# with your partition number) and press enter. Type in 'quit' (without quotations) to save changes and reboot.

Seems to work for most folks. Only problem is when I put the disk in reboot it won't boot from the #$%* dvd! Never had this problem with a vm/disk before. Usually if its set to boot from /dev/hda the ROM will override the virtual drive but it just goes into b0 error and freezes. I tried setting the boot to /media/cdrom too. No luck.

Any help will be greatly, greatly appreciated!

Had to use F2 to change the VM's BIOS. Now I have new problems...
Thanks for all the help