the binary is just 1,4 MB because it is just a kernel image. not the whole maemo os. after the flashing all settings,data and programms should are there and work fine too.

i used the x86 binary (http://maemo.org/downloads/d3.php?f=flasher-3.0) too, to flash my device. the flash command must be run as root to ensure the right to use the usb-ports. the process should take 2-4 secs... but there will not be any messages a la "mppe was enabled!" but i imagine that there was a green(not blue) indicatior bar during flashing. u can just check it if you install pptp, set all settings and try to connect to your university. if there is an error a la "your kernel doesn't support mppe" ... than you know that there was something wrong.

Is there linux on your laptop too? if so, i recommend you to sit down with your laptop and try to connect the laptop via pptp. (no gui, just use the config files and the xterm)

if you got this working, sit down with your device, flash it, install pptp, set all settings, and have the same fun as on your laptop!

hint: use the follwing command to start the connection:
look at the output of the line above, it will tell you all necessary about your tunnel ...

greetz