i used the same debootstrap deb and like you said all went smoothly.

I am trying to boot into ubuntu so i have to build some packages from deblet svn.

Are you sure it will accept debian armel repository? I remember i tried to add mojo repository in debian but apt-get complained about "packages-armel not found" or something...

EDIT: it will accept, since debian repos have arm architechture packages, but these are for armv3 or 4. Would be good for 770?