Two more questions for clarity's sake:

The instructions state that FAT/FAT32 formatting is necessary for the SD card. Does this refer to the card I am installing from or the card that I am installing to (or both)? In other words - does the SD card that will hold the resulting local.img and swap.img have to be formatted FAT/FAT32?

I assume that virtual memory should be turned off for the install. From what I've read here the swap.img functions as virtual memory for Maemo when complete. Are these assumptions correct?

Thanks!