Fanoush: Thanks for the excellent advice in this matter, which I will be following up on. Two other matters:

1) Your README has a slight but possibly misleading typographical error:

ROOT DEVICE

"root device can be set either by linux flasher on PC over USB cable"

Shouldn't that "on" be "or"?

2) In your instructions for booting from MMC, you state:

"The first time I tried this on my N800 it led to continuous reboots 30-90 seconds after booting. Trying it a second time on a clean install (directly after flashing and erasing everything already on the device) worked fine."

Does this mean that you don't recommend installing various applications on the flash operating system (i.e., kbdd, fbreader) prior to copying it to the MMC, which would be a means of saving having to reinstall such applications second times in both (or more) operating systems?