I swear, I will bang my head against something, but as soon as I am convinced that I can't figure it out on my own and feel I have to post, I get a flash and figure out what I did wrong.
I will leave this in case someone else makes the same mistake, unless the forum moderators feel it's wasted space.
IDE drivers were not the problem whatsoever. What was causing the problem was adding in extra APM & ACPI modules. I had forgotten that I looked at those modules and thought they would be a good idea. After going back, just selecting the IDE controller drivers, and then redoing the dom0 and domU kernel setup from the inital make world
point in the howto, while making sure I cleaned up previous makes, worked like a charm.