The issue with failing to flash eMMC has come up in bug reports

https://bugs.maemo.org/show_bug.cgi?id=7433

Happens on different o/s and cause/solution seems unclear - comment 12 would be worth trying. Also a chap called bonerp had same error, might be worth PMing him to see if he managed to solve it (looks like he now has a Desire so not a good sign).