I'm guessing /data is being wiped too early in the process... I'll try again tonight to get it working perfectly...
I also figured out how to get the update.img to successfully install a kernel to the kernel partition. This means I can move the kernel from the boot image partition to the kernel partition in the next ROM versions, which will make it easier and safer to test custom kernels in the future if we get a kernel dev working on this tablet.
ShaunMT
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