This is without quiet splash in the kernel line.
This problem is actually exactly the same as the one I'm having with the BT4 Pre-Final, which is being booted directly from the boot files instead of the iso.
title Back | Track 4 Pre-Final
kernel /bootbt4/vmlinuz BOOT=casper boot=casper nopersistent rw quiet vga=0x317
initrd /bootbt4/initrd.gz