Actually that worked even for such an "old" JB
I rsimply removed the "ENABLE_HACKS_UPDATE" file, allowed the Amazon 3.3 to download, performed the update like you are suppose to do (from the "menu -> settings - > menu -> "update your kindle") took a while (it's a big update)and kindle "booted" twice btu all was fine
MY SS hack still works.
So I then but back the ENABLE_HACKS_UPDATE empty file (just so I could still "block" future Amazon firmware push's, I completely bypassed 3.2, unless I want to update it.)
as a sidenote: I went out to Best Buy and bought the on-sale and really cheap $89 keyboard 3G/w SO Kindle (I really have no desire for touch screen or color ebook reader) - "just becasue" a $89 3g Kindle is a STEAL. (I'll probably give it to wife).