OK, so what exactly was the problem, and how did you fix it?

I am thinking it sounds like what I have seen on some cards. It just fails, and until you reboot and run again it will continue to fail. It has something to do with the repartitioning. Some card handle it fine it seems, and some it seems need to be rebooted in order to be useable after a repartition.

Glad to hear you eventually had success.

I updated original post

IF YOU COMPLETE THE INSTALL AND THE CLONE WONT BOOT, OR IF THE INSTALL FAILS. BOOT/REBOOT BACK TO FLASH AND RUN IT A SECOND TIME (LET IT UPDATE) THIS SHOULD FIX IT. SOME CARDS SEEM TO NEED TO BE REBOOTED BEFORE BEING USEFULL AFTER PARTITIONING


If you look at the log output below you can see what is happening. Even though the script called it to reread the partition table, apparently it read the old one, and it did not create the needed devices we just created (/dev/mmcblk1pX) Rebooting and allowing the system to reread the card, it now will have the devices when it boots. Its possible that just removing the card, and then re-inserting it may work also, but I have not tested.

LOG OUTPUT
mke2fs 1.37 (21-Mar-2005)
Could not stat /dev/mmcblk1p2 --- No such file or directory

The device apparently does not exist; did you specify it correctly?
mkswap: can't open '/dev/mmcblk1p3': No such file or directory
swapon: can't stat '/dev/mmcblk1p3': No such file or directory
mkdir: cannot create directory '/device': File exists
mkdir: cannot create directory '/flash': File exists
insmod: cannot insert '/mnt/initfs/lib/modules/2.6.21-omap1/mbcache.ko': File exists (-1): File exists
insmod: cannot insert '/mnt/initfs/lib/modules/2.6.21-omap1/ext2.ko': File exists (-1): File exists
mount: mounting /dev/mmcblk1p2 on /device failed
ERROR
SD CARD IS IN USE - SAVE DEB TO FLASH AND RE-RUN
ERROR