Looks like I got it! (Thanx Stskeeps!)

I had two issues, but I think they were related.

I went through the install and couldn't install nit-env-lxde. So I did the nit-env-basic.
And finished the install.

Then I could boot in in console mode, but was having some problems.
/ filesystem was mounting read only and apt-gets weren't happy.

I think that was because I finsihed the install instructions, which had me restore the files from there non-dummy state to the originals, but I wasn't technically done installing yet.

Anyway, after alot of installs and errors about hal, it finally finished.
Now it's up and swap is mounted and / seems to be rw.

Had I left the dummy files in:
ch# rm /usr/sbin/invoke-rc.d; mv /usr/sbin/invoke-rc.d.REAL /usr/sbin/invoke-rc.d

ch# rm /sbin/start-stop-daemon; mv /sbin/start-stop-daemon.REAL /sbin/start-stop-daemon
..until after I was done with the installs (instead of running those lines after I was done with the apt-get install nit-env-basic), it probably would have gone smoother.

Anyway, I have 868M free on my memory card right now.

Thanx again,

desiv