Mac Pro won't boot passed blue screen

I have been running 10.7.5 for a year after purchasing this used Intel mac 8-core with 16GB RAM. It came with 10.6.3 installed and I have that original disc.

I recently installed Altiverb 7.05 and permission errors started showing up. So I went into DU and did a 'repair permissions" to no avail. I looked at different folders in my SYS drive and all had different admins associated with apps, etc. Now it was time to boot from the 10.6.3 disc and get into the DU and repair the disc, which i did and it found no errors. I repaired permissions again from the 10.6.3 disc and ACL issues were turning up and all said "user is 501, should be 0". So, next I had a spare clean drive in the Mac and Installed 10.6.3 on that drive, but i also migrated, user (only one), apps and other documents to that drive during install. I should also mention that i migrated the SYS disc from my G-5 to the Mac Pro when i bought it.

Now I tell the mac pro to boot from the new drive with 10.6.3 on it and it gets to a blue screen after logo and spinning gear and stops booting. I have tried Holding the "C" key to get back to the disc and it won't boot from the disc either. I have tried "safe" mode boot, same thing, Verbose boot, nothing. It just goes through the same series of booting and freezes at the blue screen. Any ideas?