if the intent is to get the os onto the internal sd
Then you want a pristine diablo installed on the internal system.
nothing added...at all.
then xterm installed as I mention in the walkthrough...so as to allow console tools to do its job...
and then console tools installed.
then you are fresh and ready.
Install nothing more than the stated prerequisites in the walkthrough.
add no repositories until their time to do so...and only add what is advised in the walkthrough to achieve the cloning.
then prep your sd card (that is mentioned as well ...) put it in...make sure your device is charged up sufficiently ..
and begin cloning.
Once cloned properly ..then boot into the cloned sd and add all the stuff you want....TO the cloned os on the sd card.
It is best to leave the original internal diablo nice and spartan with only what is needed ...in case you wish to clone again ...

Putting all kinds of stuff into the internal device flashed diablo ...and then...cloning ...will meet with all kinds of issues.

Lastly when it comes to gronmayers catalogues ...
I suggest you refer to the link in my sig "the lost gronmayer cats"
there are detailed references there concerning offline cats
online cats
duplicate cats
and cats that appear online but are problematic if installed ..or are empty and are problematic if installed.
and much more info.
(my findings are not up to date...so there may be one or two new issues ...possibly...so be picky initially...install only what you need to ...and test the functionality afterwards to ascertain all is well...note any addition that you add that causes issues ...and post it in the thread if you could...)
so be picky until you know what for certain does work with no prob.
Blanket install ...even what appears online...is not a good idea..from gronmayers

Frankly there are more than a few repos inside gron's meta repo that I think should be pulled into the central repos here ...stuff like xmms ...hate if that one is lost...(I have a back up of it all ...but still...)...which should be dissected ....and a version made ...and applied to the n900

anyway...
have fun..
and fill me in on how it goes..