PXE is ethernet controller right? Is the thing connecting to the internet on boot, try to turn it on physically disconnected from the network.
If you can get into the BIOS you could maybe load a recovery disk with the boot order(but you said F8 is not working). Or disable PXE altogether. Kernel errors are nasty, could be a number of things doing it. I would start with testing RAM first and foremost if the System Memory is reading that low.
If that doesn't work I dunno maybe setting ARE corrupted and resetting CMOS might help(but doubt it).
http://www.ehow.com/how_6807195_clea...utm_source=ask