Whatever the OS X version you go for, you can only run a Crestline laptop in 32bit kernel mode. There's no graphics support for the GMA X3100 graphics chip in 64bit mode. If you're running Lion 10.7.2 in 64bit default mode, that'll be the reason why you're not getting any graphics support.
Make sure you use our bootpack and if EDP fails, we'll work something out to make it work. I think it's fairly safe for you to go back to ML 10.8.5 (if that's what you prefer) and we'll get those features to work.
No need to downgrade BIOS, it'll not make any difference.