1. Curious about why 2012.08 with either default vga=791 or change to vga=normal boot will hang at boot with <undefined video mode> but if I change to VGA=788 seems to boot fine. Does this have to do with the netbook resolution (1024x600 I believe)?
I have read about booting vga=normal then fixing in display settings after desktop loads but that did not seem to let me boot either.
2. Also upon loading of desktop I receive notice " K daemon quit unexpectedly ( kdeinit PID4)" Of course there is no gdb installed to send report. Otherwise seems to load and run fine.
3. This installation seems to boot from SD card in USB adapter but not in SD slot. Maybe no drivers for the SD slot?
Going one at a time:
1.) vga=791 means 1024x768, which exceeds the stated resolution of your device. vga=788 is 800x600, which does not exceed, and therefore can be displayed. (And... both of these settings also includes 16-bit color depth.)
2.) I've seen the same error before on older hardware. Your netbook seems recent enough. Not sure why this would happen. Glad it's not a show-stopper.
3.) You're probably right about this being a hardware/driver issue, maybe a chicken/egg problem? You might be able to load the driver at boot with an edit to the GRUB boot stanza. The trick would be figuring out what the right driver is. Might involve some trial and error, or just boot from the USB adapter and see what driver the system uses to get the SD Card slot working? Unhappily, Toshiba's specifications page on the NB305 doesn't divulge the hardware type for the card reader. http://us.toshiba.com/computers/laptops/mini-notebook/NB300/NB305-N440BL/
. You might check the PCLinuxOS Control Center (Hardware) and see if you can get any info about this - might help select the right driver.
Menotu's idea about trying 2012.12 is worth a look - it might resolve these problems for you - you won't know until ya try.