I seem to be having a similar issue, though on a Falcon RGH2 install. When my DVD drive is connect, Xell (v0.993-git-7466b6d) always hangs at this point:
* sata hdd initATAPI inquiry failedno ata device connected. * sata dvd initATAPI inquiry mode: HL-DT-STDVD-ROM GDR3120LSATA device at ea001200
Disconnecting the DVD drive allows me to continue past this point, get fuses, etc.
Would an older version of Xell resolve this issue? Is there a way to configure Xell to skip sata initialization?