In bad form, I am answering myself... http://www.internettablettalk.com/fo...?t=3140&page=2 -o loop is not supported by the mount-command on the 770 but somebody from the mailinglist made a binary of losetup which lets you work around that. So, if I can find or compile losetup, it should work. Of course, since I am booting from my card and not flash, and I made a 1gb partition, I can just untar the XFCE stuff to usr/local, since I have enough space. But, I was interested in finding out why the loop device is not working, and not everyone is booting off thier SD card....