i have recently discovered BartPE and have been salivating at the brain about this idea.
what exactly do you mean by kernel? i ask because the term is frequently applied to the xbox bios in this scene. of course in the PC world, it is something completely different. in the PC world, it is the core or nucleus of the OS.
i wouldn't think the xbox bios or getting BartPE to boot is a serious problem. how do they get linux to boot? how do they get WindowsCE to boot?
however, if the OS (BartPE in this case) reads from the (PC) bios AFTER boot, yes, i see big OBSTACLE, but then i wonder...how does WindowsCE run on xbox...
...off to do some reading...