That's sounds and looks like the same problem I have. I found a compatible(i think since it allows me to type after displaying kboot) keyboard and mouse but after it displays kboot it just waits for a second then displays a list of code about 5 lines and then my TV just turns blue but the PS3 is still powered on.

WTF is going on anyway? I really didn't think it would be this difficult to install YDL.