I also have this problem, but I get a little further...
When the "Ziggurat Vertigo" text displays I get a brief glimpse of the level itself but then it quickly crashes without an error message.
I am having a further problem which may or may not be related but sound similar...
Some time ago, I unpacked all the original game's level files, recompiled them (for transparent water and better lighting effects amongst other things) and packed the whole game back into a large pak0.pak. This worked fine on all other builds of quake, even the original DOS binary, but if I try and use my pak file or any of the levels from it, once I have extracted them, on PocketQuake, the game crashes out with no error. This even happens if PocketQuake tries to run the intro demo because it loads e1m3.
However, if I load some custom levels that I have made, which have been compiled with the same build tools, they work fine.