Well that is all correct too. Strange as I have only seen the boot loop with nitdroid if the kernel hasn't been there or the item file is wrong. Just to check, you are using the most up to date version of multiboot??? If so, I think that something has gone wrong during installing. Remove the kernel from /boot/multiboot and re-do Code: dpkg -i /home/user/MyDocs/nitdroid-kernel-2.6.28-05_final1_armel.deb This will replace the kernel for you so we can see if that was the issue. If this doesn't fix it I think you are going to need to do a full re-install of NITDroid.
dpkg -i /home/user/MyDocs/nitdroid-kernel-2.6.28-05_final1_armel.deb