I have this exact same problem. But, it seems that everyone who was working on the project over there has lost interest.
I got it to work once when I booted through iTouch. But, now it just dies in exactly the same spot you mentioned.
Thanks Valyr for the quick response. Dont worry too much about it. The interesting thing is that when I first installed the Sakura os on my m3 real, the game worked almost consistently through iTouch boot. Then it kinda stopped after I updated the sakura os again. So, im wondering if the problem is a DLDI issue that maybe you can glance at if you have the time. I looked at the boot headers after applying the patch. And, it says that it looks fine. But, it still crashes directly after the company logo screen. The fmv wont play at all. It's just 2 black screens.