I also have a fresh install of 1.02 + your kernel image but I do not have displayserver" I thought all I needed was just the 1.02 image and your kernel image

That must be it. There are several parts to displayserver, the kernel image is only one of them (I'm just providing a substitute for this part that also includes the hack for the visuals). You can find the rest and instructions for installing it from Frank's page. I remember more detailed installation instructions posted on the BBS but I can't find them.

Borislav