Picasso96: Could not create graphics board context for '', please check your Picasso96 installation!
Usually means that autoconfig has not allocated your gfx card's RAM space correctly.
What else do you have installed which sits in the Zorro II address space?
Use the command line program "showconfig DEBUG" to dump out your memory allocation and show us a screenshot.
Is it worth trying the Picasso in segmented mode (via a jumper) just to see if that works?
What does it say if you hold down both mouse buttons on boot and click on show-boards (or whatever it is)?