Geoff, we have updated the image, as a few people were saying that 1.7 was having random lockups.
I test moving the console on this image and it also works.
Right after the first boot I entered;
sudo nano /boot/cmdline.txt
deleted 'fbcon=map:10 fbcon=rotate:0 fbcon=font:ProFont6x11' from the end, and rebooted.
Console is now on HDMI
Try testing with X not running.
To stop X from automatically starting on each boot.
sudo nano /etc/rc.local
And add a hash '#' in front of 'su -l pi -c "env FRAMEBUFFER=/dev/fb1 startx &'
Mark --OzzMaker.com --