this thread is reliving a thread from the day 10.8 came out.
this has all been rehashed before
The current ML install works 100% perfectly on 1,1 or 2,1 once you alter 2 values in boot plist.
You also need to have replaced your 7300GT or X1900 with something that came out later.
There is a 32bit kernel that Apple built just for the OS on these machines. One or two people have claimed insider knowledge that Apple included this kernel merely as a tease and that it won't be there one day soon. (key scary music) If this happens, you will be able to use the hackintosh method and run the 64 bit. It will add some steps but it will work.
The REAL answer is a new 64bit EFI for these machines. The EFI from a 3,1 is perfect place to start as some of the parts are the same. The ONLY way to do this is to build a 1,1 with a socketed EEPROM and do ALOT of trial and error. This has in fact been done, I could show you some lovely photos of the soldering work that were shared with me. The guy doing it gave up when the mountain got too tall.
Maybe someone else will try. Or maybe some kind soul at Apple will leak it. I guarantee that they have one written. Would have been natural way to develop 3,1. They just have no good reason to let such a thing out in the wild. If someone sees a Mac Pro with Red PCBs on Ebay or Craigslist, BUY IT !!!