hmm. I also get
The program 'matchbox-panel' received an X Window System error.
This probably reflects a bug in the program.
The error was 'RenderBadPicture (invalid Picture parameter)'.
(Details: serial 249 error_code 148 request_code 144 minor_code 8)
(Note to programmers: normally, X errors are reported asynchronously;
that is, you will receive the error a while after causing it.
To debug your program, run it with the --sync command line
option to change this behavior. You can then get a meaningful
backtrace from your debugger if you break on the gdk_x_error() function.)
EDIT: AFTER I INSTALLED
me@kindle:~$ sudo dpkg -i /root/matchbox-panel-2_0.9.3-8_armel.deb
I will flatten it and start again.