I haven't heard anything from Freescale, but I've (FINALLY) managed to get past this point and get my builds to run on my SABRE SDB. For me the problem appeared to be in the process of making the SD card itself. I tried using the MFGTool on Windows and that didn't change the SD card at all. So I used two shell scripts to partition and then copy the .img files to my card. At first I did that in a VM from my Windows machine and it didn't work (hung at "Freeing init memory: 252K"). So I moved to a physical Ubuntu box and ran the same shell scripts with the same .img files onto the same SD card and it works...
After that I also had to modify the U-Boot bootargs variable to match my monitor setup. And there are still some issues I'll have to work through (e.g. my board now automatically suspends shortly after it boots up). But I've seen discussions about those things so I'll keep working through them.
Saurabh - are you trying to boot from an SD card? If so, here's what I'd recommend:
1) Make sure you've applied the correct patch to fstab.freescale
2) Make sure you use a physical machine to burn your compiled .img files onto your SD card
3) Double-check your bootargs variable in U-Boot environment to make sure it matches your setup
If it might be helpful, here's the bootargs value I'm using (I'm sure this will change, but at least it gets my board to boot):
console=ttymxc0,115200 init=/init video=mxcfb0:dev=ldb,bpp=32 video=mxcfb1:off video=mxcfb2:off fbmem=10M fb0base=0x27b00000 vmalloc=400M androidboot.console=ttymxc0 androidboot.hardware=freescale androidboot.serialno=121221d4d81917c9