Well, I probably did this all wrong -- seeing now the Gentoo wiki page on installing. I probably should have started without portage in my image. But I thought I'd share the way I did it, took a couple tries.

emerge --sync

After doing alot of "emerge -upDN world" sorts of things. Put this in my /etc/portage/package.keywords
=sys-libs/glibc-2.9_p20081201-r1
=app-misc/pax-utils-0.1.19
=sys-apps/openrc-0.4.1-r1
=sys-fs/udev-135-r3
=sys-apps/sysvinit-2.86-r12
=sys-apps/baselayout-2.0.0
(I assume it was easiest to go ~x86 on everything for new baselayout etc, but I rather not...)

emerge -uDN world
revdep-rebuild
emerge --depclean

(my route was slightly longer, but I think this is the important part)

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