Can you try with "--set-rd-flags=no-omap-wd,no-retu-wd,no-lifeguard-reset,serial-console" and check again? I presume some hardware watchdog is not being handled properly for N800 and is triggering a reboot. BTW when you get to the NITdroid animation you can fire ADB (sudo ./adb shell) and run logcat, pasting the output would be very useful to improve the N800 support.