OK, solved my first problem! For easier searching and for future reference of others like myself, to install Canola if you have a problem on OS2006 on the 770, navigate on your N770 to: http://openbossa.indt.org/canola/install.html
Then click on OS 2006, and follow the simple directions! It works like a charm.

Any comments on OS2006 vs OS2007HE vs OS2008HE for the 770?

(for archival purposes: Libxrandr2, libreadline 4.3.1, libreadline 4.3-10, dependency, missing, package, 2007HE, 2008HE, 2007, 2008, vs.)