This is the instruction I lean towards in hoping to boot a 16gb on n800 with os2008.

Here are the steps:
1. Reflash my n800 to os2008.
2. I believe we need to install os xterm, but on os2008, it already has the included os xterm(v. 1.6).
3. I added the repository: http://repository.maemo.org/, bora, free non-free
4. Then install becomeroot by doing this:
Web Address: http://eko.one.pl/maemo
Distribution: bora or mistral (N800 or 770 respectively)
Components: user
Afterward, I went to browse installable, and installed becomeroot.
5. sudo gainroot
apt-get install wget
exit (question, must we exit and then tye back gainroot for the next step? It seems pointless)
6. sudo gainroot
apt-get update
apt-get install e2fsprogs
exit (again, must we exit?)
7. #sfdisk /dev/mmcblk0 -uM

/dev/mmcblk0p1: 0,14000,0C
/dev/mmcblk0p2: ,,,
/dev/mmcblk0p3:
/dev/mmcblk0p4:
Question: By doing this it leaves the device with about 1gb of capacity only right? Why would we want to do that b/c we would be limited to the 1gb of app only. Or am I wrong? Well I followed the instruction anyway since I don't know much.

8. This step is to install fanoush and I have no idea how to so I went to this website and did:
http://fanoush.wz.cz/maemo/initfs_flasher.tgz
Install the flasher application to create a boot menu (won't have to repeat this if you redo these steps in the future for a new SD card)

# cd /home/user/MyDocs/.documents/
# tar zxvf initfs_flasher.tgz (check location of Tar first)
# cd initfs_flasher/
# ./initfs_flash
Question: Throughout the entire process, do I say yes to everything? Here are a few questions I could recall: do you want to install telnet?, do you want to delete unecessary extras, do you want to install something bear. Anyway, I said yes to all. After those questions, it asks me, " are you ready to reflash the image?" Saying yes would install something I believe and reboot asking me which slot I want to boot on ( I thought this only occurs when we get to the last step which is after installing the OS). Saying No doesn't seem to have the file installed because, then after I complete the whole process as in the final step of rebooting after installing OS, it doesn't allow me to choose which to boot from.
I also would like to include that reflashing the image, makes me reboot and I chose MMC card, partition 2, ext2, but it failed and started to boot on flash. I receive this once I get to the desktop view: Memory corrupted or not formatted. ***Notice: I have followed other people's advise and had used panasonic formatted SD card. I have selected the FULL format and something Flash on, however, as a result after the completion, it shows that the card has been formatted to 15.4gb and so on, but it puts (it failed to do a FULL format Flash on because this device does not support it). Once again, the SDHC I am using is a 16GB A-DATA from neweggs $65.
9. For this problem of memory corrupted after it reflash the image, I began to take the last step before installing the initfs_flash.tgz which is:
mkdir ~/bin
cd ~/bin
wget http://www.nmacleod.com/nokia/bin/nupgrade.sh
wget http://www.nmacleod.com/nokia/bin/tar
chmod +x nupgrade.sh tar

and then sudo gainroot
cd /home/user/bin
./nupgrade.sh 0, 1, 2, 3, 4

In this step, it clones the OS2008, Sadly, it completed with many files not being able to install due to the limited capacity. By following Milhouse's script, I believe my device has 1 gb and the rest goes to the partition. Again, here was the step I did for the mmc1 and mmc2:
#sfdisk /dev/mmcblk0 -uM

/dev/mmcblk0p1: 0,300,06
/dev/mmcblk0p2: ,,,
/dev/mmcblk0p3:
/dev/mmcblk0p4:
(btw, must we umount /media/mmc2 or something? well I believe I had to do that for sfdisk to work) And I also tried to umount the way bananson as well and then did the sfdisk. Well, I really wish you guys could help me, but even if you guys cannot, I appreciate for reading. Will keep checking on this thread, maybe there will be miracle. Thanks every one!