@Beekr25: Yeah, that does sound like a bad flash, there shouldn't have been any trace of USBNet left. Which might explain why it appears to be borked ;/.
EDIT: You mentioned that USBNet still comes up. If you had it in auto mode, try doing a hard-reboot with the Kindle unplugged, and then only plug it & try to get in via SSH a bit after the spinner appears (if it gets there), that's when USBNet is triggered.
If you can get in, you might want to throw a stop framework or stop lab126_gui fast to avoid the halt on failure, and give you time to look at the system.
(Or a touch /mnt/us/ENABLE_DIAGS, since you had ixtab's rescue pack, too).
(Or assume only the rescue pack is still working, boot while plugged in, and see if it comes up in USBMS long enough for you to drop an ENABLE_DIAGS).
Last edited by NiLuJe; 11-08-2012 at 09:06 PM.