Seems that I fixed the issue by uninstalling Ubuntu 10.04 and formatting the additional space.
I re-downloaded BT4 r1 and did a md5 check on distro.
Installed BT4 r1 back on usb drve via unetbootin.
Did manual install on free space with 50000mb ext3 and 1000mb swap.
So now I got a fresh install of BT4 r1 but the boot is still at 5+ minutes.
pulled up a konsole and entered # fix-splash800 or sudo fix-splash800
Now it boots up fine.
From BT4 r1 selection from grub to BT login = 34secs
From startx to kde desktop = 17secs