When you say the yellow light was on, do you mean it was on solid, or it was blinking like a normal charging phase. There's a difference. The solid yellow indicates something very different is going on.

One thing I noted is you said you were installing MeeGo to the uSD card. I assume you loaded a boot loader that allows you to boot off the uSD. Have you tried removing the uSD card? If the uSD card image is corrupt, and it's trying to boot off of it, that could cause this.

Not entirely. There's a fail-safe circuit that will attempt to charge the battery if the BME is unable to kick in. The difference is that the fail-safe just turns the light to a solid yellow on, not blinking like BME. That way you can tell which system is doing it. It will take much longer to charge with the fail-safe system than with BME, but you should be able to unplug/re-power and use BME after about 20 to 30 minutes of fail-safe charging.