That is the correct module for that controller. Have you tried booting with one of the latest Knoppix Live CD. See if it hangs with it.
Another thought is use just the scsi drive and an ide cdrom drive.
Seen some searches from http://www.google.com/linux
and some mention the same issue. Seen no real good answer. Only one I did see says the person had to install to and ide drive then copied partitions over to the scsi drive.
Another one seen says the module is corrupt, works only with 39xxx series.
Seen one that says use the older module SCSI_AIC7XXX_OLD.
Probalby the only other thought I would try is either install to an ide drive or find someone with still the default kernel. Copy the module from thier system and add it into the ISO.
If I think of anything else I will post. Hope this helps.