Problem with constantly turning circular cursor after reboot attempt

After a heavy download session, I wanted to do a normal restart. This resultet in the Darwin/BSD screen prompting for login. Correct login/passwd just gave the same screen back. I then found the much-referred "Booting from Darwin/BSD screen" on this forum, and did this in single user mode:
/sbin/fsck -fy
/sbin/mount -uw /
cd /var/db/netinfo
mv local.nidb/ local.nidb.bad
reboot
This started the setup, but I didn't get further than selecting keyboard. Then the process froze with the turning circular cursor. After waiting a couple of hours I thought it futile and shut down with power button. Attempted again, same result. Attempted again, and now I get, both after normal power startup and reboot from singel user mode, after start sound, a light grey screen with an apple and the turning cursor.
tail -20 /var/log/system.log doesn't tell me much, but that's because I'm as good as ignorant on these matters. The 'AuthorizationRef doesn't have username' is now gone, and the only trouble my eyes can detect is:
llocalhost launchd: Server ... in bootstrap 1103 uid 0: "usr/sbin/lookup"[40]: exited abnormally: Hangup
(next line is:)
localhost lookupd[57]: lookupd (version 369.5) starting - (date)
Using the install disk might be a problem solver, but I won't have it available for some days yet. If anyone has any ideas as to what else could be done with this, or what I could do to find out more about the problem, I'd appreciate it. Note that I'm not too clever in this field, so even basic tips might be useful.

I tried zapping the PRAM, didn't solve the problem. Found some more log entries:
system.log ends with:
mdsyncServer[109]: Could not create DiskArb session or approval session.
mb.log from Sunday when Setup Assistant started:
SetupAssistant[124] * Assertion failure in -[MBNetwork Configuration init], System Configuration/MBNetworkConfiguration.m:170

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