I tried to reboot using the command "exit" and it stayed on the command line screen [as opposed to a fully reboot with chime and grey screen] It went through all the same command line messages as I posted when I did the verbose boot and stopped at the same point as before re: keychain security. So I pressed the button on the back to shutdown, then restarted and single-user mode and tried everything again. This time I noticed it said to type "/exit" so I did and this time I got the following:
So I typed "/sbin/mount -uw /" again and this time it just went right back to the command prompt, ":/ root#" and I typed "exit"
logout
Jettisoning kernel linker.
Resetting IOCatalogue.
GFX0: family specific matchinig fails
Matching service count = 1
Matching service count = 2
Matching service count = 2
Matching service count = 2
Matching service count = 2
Matching service count = 2
Matching service count = 3
iMac8,1: stalling for module
Jan 5 20:35:00 localhost com.apple.launchhd[1] (org.postfix.master): Path monitoring failed on "/var/spool/postfix": No such file or directory
Matching service count = 1
AppleTyMCEDriver:

robe(iMac8,1)
AppleTyMCEDriver:

robe fails
Previous Shutdown Cause: 3
NVDANV50HAL loaded and registered.
GFX0: family specific matchinig fails
GFX0: family specific matchinig fails
GFX0: family specific matchinig fails
GFX0: family specific matchinig fails
Matching service count = 0
Jan 5 20:35:05 localhost com.apple.launchhd[1] (org.postfix.master): Failed to count the number of files in "/var/spool/postfix": No such file or directory
Jan 5 20:35:05 localhost com.apple.launchhd[1] (org.postfix.master): Failed to count the number of files in "/var/spool/postfix": No such file or directory
Jan 5 20:35:09 localhost DirectoryService[75]: Launched version 5.8.1 (v514.28)
Jan 5 20:35:11 localhost /System/Library/CoreServices/loginwindow.app/Contents/MacOS/loginwindow[66]: Login Window Application Started -- Threaded Auth
yukon: Ethernet address 00:1f:5b:ed:d3:2d
AirPort_Brcm43xx: Ethernet address 00:1e:c2:c2:8b:b4
Jan 5 20:35:13 localhost com.apple.launchhd[1] (org.postfix.master): Failed to count the number of files in "/var/spool/postfix": No such file or directory
Jan 5 20:35:13 localhost com.apple.launchhd[1] (org.postfix.master): Failed to count the number of files in "/var/spool/postfix": No such file or directory
Jan 5 20:35:13 localhost com.apple.launchhd[1] (org.postfix.master): Failed to count the number of files in "/var/spool/postfix": No such file or directory
Jan 5 20:35:13 localhost com.apple.launchhd[1] (org.postfix.master): Failed to count the number of files in "/var/spool/postfix": No such file or directory
Jan 5 20:35:15 localhost mDNSResponder mDNSResponder-176.3 (Sep 30 2008 16:59:38)[65]:starting
AirPort: Link Down on en1
en1: 802.11d country code set to 'US'
en1 Support channels {from there it lists a LONG sequence of assending numbers starting from 1}
/drv/ HypApic.c:234 Host APIC phy 0xFEE00000 lin 0x5da65000 ver 0x14
/drv/ HypVtd.c.3500 [vtdInit]
/drv/ HypVtd.c.3516 [vtdInit] VTD initialization disabled
/drv/ HypLowCache.c.173 Low cache initialized (6208 kB for 8 VMs on 4096 MB)
/drv/ HypSMBIos.c:54 Failed to find SMBios entry point
/drv/ HypModule.c:162 Parallels IPI irq = 0 ipi = 0(0x0)
/drv/ HypModule.c:169 Parallels Hypervisor 5.0.9308.543312 loaded.
/prl_hid/ Parallels HID Helper started.
com.parallels.kext.prlnet 5.0.9308.543312 has started.
com.parallels.kext.vnic 5.0.9308.543312 has started.
Jan 5 20:35:21 joe-blows-imac ntpdate[150]: can't find host time.apple.com
Jan 5 20:35:21 joe-blows-imac ntpdate[150]: no servers can be used, exiting
Jan 5 20:35:22 joe-blows-imac mDNSResponder[65]: mDNSKeychainGetSecrets: Could not copy keychain default
Jan 5 20:35:22 joe-blows-imac mDNSResponder[65]: SetDomainSecrets: mDNSKeychainGetSecrets failed error 2313 CFArrayRef 0000000
Jan 5 20:35:22 joe-blows-imac root[172]: Recreating System.keychain because it cannot unlock; see user/libexec/security-checksystem
And that's where it stopped responding and I had to press the button on the back of the box to get it to turn off.
UPDATE- While typing this up, I noticed the date and time are way off. I'm sure I did this when in installed the new mainboard clock battery. So now knowing this, is it possible this could be exacerbating my problems? If so, how do I fix it given the current state of my machine?