Did you do clean install, after you figured you did not install the Nokia binaries? Perhaps I'm mistaking but I remember, with previous SDK, after I fixed installing the Nokia binaries later (did not opt for at run then was not able to run SDK well), it still would not work correct even though they were installed afterwards, after failing to run without. Then, I removed the whole /scratchbox and started over, after which it did work.

What kind of video driver do you use for X? Hardware accelerated? You are on x86-32?

I was thinking of suggesting virtual machine for Maemo, but seems to be for Diablo; not for Fremantle (yet).