missing reboot after sd recovery is normal. that was the case with the old image too.
but is there a log file on sd card after sd recovery? it should contain something like "sd recovery finished".
also: have you removed sd card after sd recovery?
and: what do android logs say after initialisation?
Be sure to check out the Wiki for Sony PRS-T1 Rooting and Tweaks!
Many questions are answered there already... If not - feel free to add
Some modifications will void warranty and may irreversibly destroy the device. I won't take responsibility if you damage your reader by using one of my files or following my suggestions.