Well, it seems if I try to automatically distribute a file into the /home/nemo, the permission is not correctly set for /home/nemo folder. (Now I got the same loop problem but the owner of the /home in sparse/ is not root but the user on the PC.
I thought when the builder puts this into the package it would change the permissions properly.

The issues with this new image (0.13) are some kind of combination of the previous ones.
Examples:
- It has the initial setup loop. (wrong permission on /home/nemo)
- However I included the configs into /etc/gst-droid, the camera doesn't work.
- However I followed the hadk-faq, the bluetooth doesn't work either.
- Plus the torch is not turning on.

Maybe I need to repeat the gstreamer and camera sections in the hadk?