Well, as coincidence would have it, I decided to install Midori this weekend as well. Unfortunately I'm more familiar with DOS, so I can't give you Linux/Unix command instructions. But I'll tell you what I did anyway, maybe it'll give you some idea.
I have a V2 w/flashed 540a BIOS, original Winchip, 64mb memory, running Win98SE on the hard disk, with a USB external case containing an old Mitsumi 2x CDR. Haven't gotten a network adapter for the IO yet, so I burned the image onto a CD from my desktop, along with Dolly 2.43 and Ranish Partition Manager (VERY useful little proggy), then copied them into the hard drive root directory.
Went into the IO's BIOS, configured the SANDisk (NORMAL mode, not LBA), then booted into Win98 "safe mode command line only" and used RPM to delete the partitions and repartition as type DOS. Got Dolly running after a few goes, flashed the image, went back into BIOS and changed to "D,A,SCSI" boot.
Damn thing booted to hard disk regardless, so I disconnected it and tried again. This time it started to boot Midori, but hung up right after playing the startup sound. So reconnected the hard disk, reflashed the image, disconnected the HD, rebooted, same hangup. Redid the partition to Linux and reflashed, same results.
Took fifteen minutes to vent my frustration in Hitman2 before returning to the project. Figured the Midori image got corrupted somehow (old CDR doesn't like some media), burned a NEW cd, copied the image and Dolly'd it again, and bingo! Lovely M4I desktop. Tried reconnecting the hard drive, and for whatever reason SMARTBOOT worked fine after I got the SANDisk to boot initially.
So if you use the same method, here's a few things I found out:
1. Ranish Partition Manager - you can choose either Linux or DOS as a partition type before flashing, far as I can tell
2. Dolly - command line is "dolly243 newimage.img HD129:" with no need to include the "/c" parameter (which you'd normally do for drive cloning bootable drive images)
3. Win98 - make sure you change the "read-only" attribute of the image file, as Dolly won't accept a "read-only" image. Any time you copy over an image from a CD in pre-Win2000, it retains the "read-only" attribute. Irritating as hell.