I don't get it. I have done all the steps as described in the wiki page mentioned above in this thread. Put the SD card in my laptop, dd'd the raw image over to the card, taken it out and put it in the N900.

After that the command given as pasted above, outcome is the same.

The SD card that I used is a 4 gig Micro SD, with EXT3 fs on it. If the given command would be wrong, I suppose I'd get an error message, right?