After being frustrated at attemting to run F12 LiveUSB to install Fedora, and trying as I might every single kernel command-line option I could think of (and many more I found on-line) I gave up and tried installing F11 which I read somewhere around the forums installed OK.
I went ahead this morning and created an F11 LiveUSB to install onto this Netbook and sure enough it seemed to boot... But still stalled at the Plymouth screen. Having the previous experience with F12, I decided to reboot and this time removed rhgb, quiet and added nomodeset to be on the safe side. What happened apparently is that (and I'm sure this may have something to do with UUID) init could not find the root device, I was dropped to a shell and asked to explicitly make the symlink to the root device, which I did. Exited the shell and the boot continued normally.
The Live session and the installed system run very well, however I'm not sure if it is a bug or not, but all packages installed were i585 instead of i686 (and I do believe the Atom is better served with the latter arch) so all the updates pulled are i586. I don't care much about pretty much all package for this, but two come to mind which the computer might benefit from: the kernel and glibc. I'm currently in the process of installing updates, I still think I may end up creating my own "spin" of F12 and attempt to install again, with updated udev, kernel and maybe toss in all the bunch of updates and programs I regularly use so I wouldn't end up having to go on-line to fetch tem. But that should wait until the weekend.
For the time being, I think I do not have other choice than running F11 (which I still use in my main [gaming] rig, BTW). I nuked Windows 7 from the hard-drive (who needs an OS which eats RAM for brakefast and drains all your resources on a Netbook?) which on a fresh boot uses 700 MiB with no programs open (and we're talking about the 32-bit version!), while F12 on my main x86_64 laptop uses about 280MiB RAM on a fresh boot with all and Compiz-Fusion.
At any rate, I wouldn't go back anyway, I just regret I paid the damned thing when I bought the computer.
I simply thought I'd share this experience for other frustrated users out there. Oh, and if I get around crating the affore mentioned image, I do intend to release it, I'll only have to check if that doesn't violate the Fedora temrs of use (since being it a "spin" and not Fedora "kosher" I wouldn't know if I could release it with the name "Fedora" on it)