Since this is to support development, I have a couple of pieces of advice on hacking. The instructions here (http://wiki.mobileread.com/wiki/Kobo_Touch_Hacking
) are excellent.
To make life a lot easier, keep a copy of your personal KoboRoot.tgz to use after the inevitable firmware upgrades. Prior to using your personal KoboRoot.tgz file on a new version of the firmware, confirm the following: that the update's KoboRoot.tgz does not contain /etc/inittab and /etc/inetd.conf. Also do a diff between your modified /etc/init.d/rcS and the official /etc/init.d/rcS to ensure that Kobo has not modified the file.