Long story short, use different drivers.
Compiling your own kernel is pretty easy. Not.
From your working directory with the source:
$ cd vendor/asus/eee_701/
$ make menuconfig
Then you're greeted with a lovely window telling you about all the wonderful modules contained in your kernel. You could probably take a lot out but I'm aiming for "working" rather than "leet uber optimized". For now we'll take out the following:
Device drivers > Real Time Clock > Android alarm driver
Device drivers > Misc devices > Android pmem allocator
Device drivers / Network device support / Ethernet (10 or 100Mbit) / EISA, VLB, PCI and on board controllers / AMD PCnet32 PCI support
Use the arrow keys to scroll up and down, hit enter to go down a level and hit esc twice to go back up a level. Press n to clear the entry. I'm sure they work great on the phone but they're not so useful on a pc. Or in this case, a virtual pc. Now we want to add the following:
Device drivers / Graphics support / Support for frame buffer devices / VESA VGA graphics support
Device drivers / Graphics support / Console display driver support / Framebuffer Console support
Device drivers / Graphics support / Console display driver support / Select Compiled-in fonts (VGA 8x8 font, VGA 8x16 font)
Hit y to add the entry and a * will appear in the box. The first entry gives us networking support for VirtualBox's virtual LAN adapters. The other entries give us slow but functional graphics support. So now that we have all we want, we can start to build our kernel.
$ make bzImage
This may take a while. Not as long as getting the source or building the source, but be prepared for a wait. When it's done you can find a kernel ready to go at
Copy this file to your vendor/asus/eee_701 directory and rename it to kernel. Congratulations, you now have the kernel you need to power your Android platform. Let's move on to step 3: Building Android from source.