Well, I turned on virtual memory (swap file into internal memory card) and now everything crashes. So, confirmed the sd card corruption bug that plagued os2007 and was corrected in the latest firmware has returned.

I also purchased another sd card and the error appears after 1 or 2 hours of use.

Reinstalling OS2007 again, formatting the corrupted card and everything like a charm. Now, to bugzilla and to report this nasty bug.