I have now tried Mepis Linux, and again the older 8.0 with kernel 2.6.27 works, and 8.5 with kernel 2.6.32 does not. But Mepis gives more information as to why it fails:
It says:
pci 0000:05:02.0: BAR 6 address space collision on of device [0xfebc0000-0xfebdffff]
Now, google that and you find:
It's a bug with the way the kernel 2.6.31 handles PCI resources. Linus Torvalds describes the problem here
https://patchwork.kernel.org/patch/39988/
There appears to be a fix in the works, but not for kernel 2.6.31
and
https://bugs.launchpad.net/ubuntu/+bug/424142
So it is at least a known bug, but I'm astonished it isn't fixed as these posts are months old.
And note that 5:02 appears to be the ethernet controller, if I am interpreting things correctly:
demo@mepis1:~$ lspci
00:00.0 Host bridge: Intel Corporation 4 Series Chipset DRAM Controller (rev 02)
00:01.0 PCI bridge: Intel Corporation 4 Series Chipset PCI Express Root Port (rev 02)
00:1a.0 USB Controller: Intel Corporation 82801JI (ICH10 Family) USB UHCI Controller #4
00:1a.1 USB Controller: Intel Corporation 82801JI (ICH10 Family) USB UHCI Controller #5
00:1a.2 USB Controller: Intel Corporation 82801JI (ICH10 Family) USB UHCI Controller #6
00:1a.7 USB Controller: Intel Corporation 82801JI (ICH10 Family) USB2 EHCI Controller #2
00:1b.0 Audio device: Intel Corporation 82801JI (ICH10 Family) HD Audio Controller
00:1c.0 PCI bridge: Intel Corporation 82801JI (ICH10 Family) PCI Express Port 1
00:1c.4 PCI bridge: Intel Corporation 82801JI (ICH10 Family) PCI Express Port 5
00:1c.5 PCI bridge: Intel Corporation 82801JI (ICH10 Family) PCI Express Port 6
00:1d.0 USB Controller: Intel Corporation 82801JI (ICH10 Family) USB UHCI Controller #1
00:1d.1 USB Controller: Intel Corporation 82801JI (ICH10 Family) USB UHCI Controller #2
00:1d.2 USB Controller: Intel Corporation 82801JI (ICH10 Family) USB UHCI Controller #3
00:1d.7 USB Controller: Intel Corporation 82801JI (ICH10 Family) USB2 EHCI Controller #1
00:1e.0 PCI bridge: Intel Corporation 82801 PCI Bridge (rev 90)
00:1f.0 ISA bridge: Intel Corporation 82801JIR (ICH10R) LPC Interface Controller
00:1f.2 SATA controller: Intel Corporation 82801JI (ICH10 Family) SATA AHCI Controller
00:1f.3 SMBus: Intel Corporation 82801JI (ICH10 Family) SMBus Controller
01:00.0 VGA compatible controller: ATI Technologies Inc Radeon HD 3870
01:00.1 Audio device: ATI Technologies Inc Radeon HD 3870 Audio device
02:00.0 Ethernet controller: Marvell Technology Group Ltd. 88E8056 PCI-E Gigabit Ethernet Controller (rev 12)
03:00.0 IDE interface: Marvell Technology Group Ltd. 88SE6121 SATA II Controller (rev b1)
05:02.0 Ethernet controller: Marvell Technology Group Ltd. 88E8001 Gigabit Ethernet Controller (rev 14)
05:03.0 FireWire (IEEE 1394): Agere Systems FW322/323 (rev 70)