Yes, but if you select the last option to boot cmdline only, you can add a partition, format it ext2, create a tce directory, and reboot.
Now when you edit the last boot option, remove the 'base' option, add 'waitusb=5' and boot, the second partition is mounted rw.
You can now mount the first partition and copy the desired Xprogs,Xlibs,Xvesa, window manager to the second partition, create an onboot.lst.
Now you have a custom boot partition that you can tce-load into for a utility boot.
The only thing missing is a boot selection that has "quiet waitusb=5" as the only boot options.