Hmm, looks like kernel hangs even before running userspace stuff. That's odd. What happens if you boot from flash with patched kernel and then insert the 1GB card after system is up and running? Does it work (i.e card is accessible)? Are there some errors in kernel log when card is detected? Or when it is being read later (try to run 'find /media/mmc1' to scan card file structure)? To see kernel log you can run 'dmesg' in osso-xterm after you insert the card and close door. Or you can leave 'cat /proc/kmsg' running as root and experiment with the card.