Change timeout from 10 to 3-5 sec. Remove quiet and rhgb - this will make it boot faster and follow CSchwangler's advice and change runlevel to 3 (the boots only command line).
Is your BIOS configured to boot without keyboard?
(I assume it is at present)
After that, it doesn't matter what is in the grub configuration as long as there
is a timeout (even if 0, which can make fixing some errors harder).
The system will come up. The references to initmode 3
are to disable the default of starting X (initmode 5). This is set in the file
/etc/inittab (change the line "id:5:initdefault" to "id:3:initdefault").