By the way, are you adding these lines to the SPI Flash image or to the SD image?
I'm adding these lines to the SD Card image grub section of the grub.conf file.
The issue is now solved. There was an extra comma between the 2 entries which was creating the problem. The grub.conf file now looks like the following:-
title Quark X1000 kernel-MassStorage initrd-MassStorage RootFS-MassStorage IMR-On IO-APIC/HPET NoEMU debug
kernel /bzImage intel_quark_hsuart_dma.uart0_dma=0 intel_quark_hsuart_dma.uart1_dma=0,root=/dev/ram0, console=ttyS1,115200n8 earlycon=uart82
The dmesg shows :-
ttyS1 - failed to request DMA
ttyS0 - failed to request DMA
Also, cat /sys/class/dma/dma*chan*/in_use show 0 for all the four channels.
Thanks a lot for taking time out and digging into it, Pablom..