Drat. SetPatch is trying to activate something that is not working. Wait, this is in a 4000? I vaguely, vaguely seem to recall someone else having a similar problem a few years ago. Their system was crashing at SetPatch. That's because SetPatch was trying to activate the AGA graphics routines, and something in the chipset on their motherboard had failed. The system worked, just not "the AGA part". This seems probable for you, as well. It's unlikely the command itself is bad, what whatever component it's trying to activate has issues.
Afraid I'm not going to be of much help beyond this, try searching the forums or wait for someone else to come along who can help you fine-tune the SetPatch command to see where it's failing?
One last thought - try removing all expansion cards and see if that makes a difference?