wouldn't know about the no video problem, as everytime i've done a 1.6/1.6b i've used the same exact method as given and i've never encountered the problem.
??
possibly a corrupted bios, bad d/l perhaps? when in doubt, start from scratch.
EDIT:
although... perhaps it's when people are using the wrong bios for their box? like using m8plus_16 for a 1.6 and m8_16 for a 1.6b...
1.6b + m8plus_16 = perfect
1.6b + m8_16 = bad
1.6 + m8plus_16 = buggy
1.6 + m8_16 = perfect
that's the only possible reason i can see as to what's happening, that or a bad d/l.. either or