I have tried both settings of clocks_in_mhz and have made sure that I copied u-boot.h from uboot to ppcboot.h in Linux.

If you're really using a Lynx KDI, this is not necessary. The KDI should be self-contained.

I have made sure that IMAP_ADDR is correct but I still get the same thing, just hangs after uncompression. I am totally stumped.

This is really, really, important ... double check this. The default Bluecat hardcodes the IMMR ... it doesn't look for the u-boot parameters ... it just creates its own bd info struct. So if u-boot and Bluecat are not in sync, the behavior you describe is just what I would expect.

vco = 266.666 MHz sccfreq = 66.666 MHz brgfreq = 66.666 MHz intfreq = 199.999 MHz cpmfreq = 133.333 MHz busfreq = 66.666 MHz baudrate = 115200 bps

This is another area to check. The default Bluecat BSP for VADS has many of these hardcoded. Although u-boot is smart in this area, Bluecat is (unfortunately) is not. The Bluecat code may not be setting up the uart BRG incorrectly -- check any code you borrowed from the VADS BSP.

Regards, --Scott