Well the original problem was a dumb thing. Forgot I changed ACR0 because I had change MBAR. Once that was restored the kernel begins to boot but hangs at:
-> bootm 02000000                                                              
## Booting kernel from Legacy Image at 02000000 ...                            
   Image Name:   Linux Kernel Image                                            
   Image Type:   M68K Linux Kernel Image (uncompressed)                        
   Data Size:    2768896 Bytes =  2.6 MB                                       
   Load Address: 00020000                                                      
   Entry Point:  00020000                                                      
   Verifying Checksum ... OK                                                   
   Loading Kernel Image ... OK                                                 
OK                                                                             
Linux version 2.6.25 (jkimble@localhost.localdomain) (gcc version 4.2.3 (Source8
starting up linux startmem 0x302000, endmem 0x4000000,          size 60MB      
console [ttyS0] enabled                                                        
Built 1 zonelists in Zone order, mobility grouping on.  Total pages: 8156      
Kernel command line: root=/dev/nfs rw nfsroot=172.27.163.2:/tftpboot/ltib ip=17)
PID hash table entries: 256 (order: 8, 1024 bytes)                             
Console: colour dummy device 80x25                                             
Dentry cache hash table entries: 8192 (order: 2, 32768 bytes)                  
Inode-cache hash table entries: 4096 (order: 1, 16384 bytes)                   
Memory: 62056k/62056k available (2056k kernel code, 1328k data, 88k init)      
SLUB: Genslabs=13, HWalign=16, Order=0-2, MinObjects=8, CPUs=1, Nodes=1        
Mount-cache hash table entries: 1024                                           
net_namespace: 152 bytes                                                       
NET: Registered protocol family 16                                             
MCF5485x INIT_DEVICES                                                          
SCSI subsystem initialized                                                     
NET: Registered protocol family 23                                             
NET: Registered protocol family 2                                              
IP route cache hash table entries: 2048 (order: 0, 8192 bytes)                 
TCP established hash table entries: 2048 (order: 1, 16384 bytes)               
TCP bind hash table entries: 2048 (order: 0, 8192 bytes)                       
TCP: Hash tables configured (established 2048 bind 2048)                       
TCP reno registered                                                            
m547x_8x DMA: Initialize Multi-channel DMA API v1.0                           
I've looked further and still not getting this. As I said before the only change to U-Boot was to increase the size and type of flash but this was done in a way that I know works. I'm going to start putting some debug in the kernel to see what's happening but I have no debugger so it's going to be painful. The size of SDRAM has also changed to 128Mb. I made the change in the /include/config.h file. Is there another place to change this in U-Boot? The kernel?
This is sooo frustrating. I feel like I'm so close to getting this up!!
Thanks for any help you can give.