Is there no screen where you can set the modem's IP, enable/disable DHCP and choose what IP addresses it goves out via DHCP? Your ISP has probably locked all such functions.
I agree that DHCP seems to be working since your PC an iPhone have both been assigned an address. Since your PC's address is 192.168.1.100 it is likely that the TiVo will be assigned an address in the range 192.168.1.101 to 192.168.1.110
Also your HDD imaging must have been sucessful or you would not be able to boot the TiVo as you point out. I think the kernel mismatch error is normal.
You should not have chosen 'other' for the emulator, you should have chosen 'oztivo.net' and then at the next prompt checked/changed the port to 9090. You have now probably set the emulator address to 9090 when is should be www.oztivo.net
There is no need to change the MAC address unless you have two series1 TiVos on the same network.

Although I test all network cards before they go out, it is possible (although unlikely) the turbonet card is faulty. If you want to risk paying return postage, then you can send it back for me to retest. Obviously if it is faulty I will cover the postage both ways.

If you do get the network going, then can I just check you are aware of the guided setup how-to