I'm about to slam this thing into the ground. I've reflashed it about 7 times already trying to extend the root fs. Here's what I'm doing.

sudo gainroot
umount /media/mmc1
/var/lib/install/sbin/cfdisk /dev/mmcblk0
I make one partition 771MB, Primary, beginning, change the type to 06, and leave it alone.
I make another partition 256.61MB, primary, and make that type 83
Quit
mkfs.vfat /dev/mmcblk0p1
shutdown -r now

sudo gainroot
/var/lib/install/sbin/mkfs.ext3 /dev/mmcblk0p2
/var/lib/install/sbin/extrootfs

I endup with a bricked device everytime. I'm using a Transcend 1GB MobileMMC card. When I reflash, I check the card without reformatting it or anything, and I end up with the following.

Memory in use: 251393526 kB
Memory Available: 1000208 kB
Email, audio, video, etc are all 0 kB up until I get to...
Other files: 251393526 kB

-Edit-

umount: lazy umount of (null) failed!
umount: /dev/mmcblk0p2: Invalid argument