I found the problem, I need to roll-back to 2.6.35.7 KS kernel.
I connected to old life-cycle pc's to the network and they worked great with fog. did some more research and everyone says the KitchenSink kernel works best for akward hardware.
i have to .tar.bz2 on my desktop, got it extracted but i don't know the commands to install. can anyone hlep?