Here we go...
First, there seems to be an issue under 10.2.5 when you have a USB HUB plugged into your Mac that causes a kernel panic. Which seems to be what you're experiencing. Info
here From what I remember this couls apply to other USB devices too... Some steps to take (original advice from Dr. Smoke over Apple's discussion boards);
Kernel Panics - Comprehensive Advice
The "You Must Restart Now" message indicates a Kernel Panic.
Advice for resolving Kernel Panics and other startup problems can be found in the following Apple KB article: Mac OS X: Troubleshooting a Startup Issue.
Kernel panics are often caused by incompatible hardware or drivers that are outdated and/or poorly written. Disk data corruption, such as bad sectors, could also cause a problem in the boot sequence, resulting in a kernel panic.
If the instructions in the above-referenced KB article do not resolve the issue, try the following:
A. Repair OS X Boot Volume and Permissions: Run the following process to assure your OS X boot volume and permissions are not at fault:
(1) Boot from your OS X 10.2 Install CD 1.
(2) When the Installer comes up, select Installer/Disk Utility from the Apple menu bar.
(3) When Disk Utility comes up, select your OS X boot volume.
(4) Click on the First Aid Tab.
(5) Click on the Repair Disk button. Be sure to note any problems it finds.
(6) After Repair Disk completes, click on the Repair Permissions button.
(7) After Repair Permissions completes, Quit the Disk Utility. Focus returns to the Installer.
(8) Quit the Installer. When prompted, select Restart.
B. Run the Apple Hardware Test CD that came with your computer. You may want to run the Full Test several times in a row, perhaps as many as six, as sometimes intermittent problems are not caught in just one execution of the full test. Pay special attention to the RAM tests. If the Hardware Test identifies any problems, have these repaired.
C. Eliminate other potential hardware problems:
1. Remove all external hardware -- USB, FireWire, and related devices -- except the mouse, keyboard, and monitor. If you have recently added RAM that has not previously worked with OS X, remove that also.
2. Re-boot and see if the kernel panic does not recur. If so, you have a hardware-related problem.
3. Add back one of the removed hardware components. Reboot. If the kernel panic recurs, the last hardware component you added is the culprint.
4. Repeat step 3 until you have added back all hardware components except those which caused Kernel panics.
5. Contact the manufacturer of the component(s) responsible for the panics, or check their Web sites, for updated drivers or further advice.
D. Contact Apple Technical Support
Good luck!
Chris