@ jinnn_1989, casper27 as well as anyone else facing this problem.

I've created a dirty hack which made bluemaemo work (at least its showing the UI without useful errors). I do not know if it is the screen one is supposed to see as I don't have many bluetooth devices to play around with. Tried pairing N95-1 with errors and I don't see anything new in the main menu.

Anyway the hack is:
What the hack does is that it would soft link an older version of libembryo as requested by bluemaemo with the later version of libembryo provided within the repositories.

It is suggested from then on that one shouldn't be running bluemaemo on screen as the program would start displaying control chars which may mess up the prompts once exited. If the prompts were messed up with the control chars, one can type in "reset" (without quotes) and ignoring however its displayed on the screen and this in theory should reset the console prompt back to normal. Failing that would require one to exit that terminal session/ssh (back to host where one can then reset the terminal from their localhost) or otherwise.

link to the screenshot of bluemaemo 0.3-10 working.