I had the same problems trying to install CAnaola 2 on 2008 but I think it is partly because I selected "restore" after upgrading the OS to 2008.

That was a mistake as some buggy code may be revelaed that way. I did NOT need to rename repostory to repository anywhere after I reloaded2008 and then canceled without doing a restore.

All Apps now install fine including Canola 2 . I had tried 10 times at various times of day before i finally reloaded 2008. Since I had just bought the N800 restoring was not urgent to me. I just moved a couple thigs over to the Sd before reloading.

Hope this helps,

E