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I had another guy that (just recently) had problems like this. I guess that he was unzipping the file and then burning it to the SD. He seemed to fix it by just burning the .tar.gz file without unzipping it (which is what we recommend anyway).

I don't assume that would be related to your problem, but I mention it because it could be worth a try.

Also, if you haven't, be sure to look over http://freeplaytech.com/troubleshooting to see if there are any pieces there that jump out.