Have you ever tried one of the following procedures?
This way, I got my dictionary fixed several times... But I suspect it fill break again sooner or later....
I also made my T1 run fixpermission.sh automatically on device boot via install_recovery.sh which made my rooted T1 much more stable.
You also might have to fsck your data partition - it easily gets corrupted on inproper device shutdown and there is no auto repair on boot. you can fix it on recovery console with e2fsck static binaries. Just download the binaries from here: http://packages.debian.org/squeeze/a...tatic/download
As you cannot run binaries from reader partition or external sd card, so you'll have to put them somewhere else. As you may want to fsck the data and system partition, I suggest you to put the e2fsck binary onto the preload partition (just free some space there by deleting foreign language books you don't wanna read). You'll have to make it executable via chmod +x of course.
Settings are stored in /data/data subfolders BTW.
And yes - if you format the data partition, it is like a factory init which should fix most problems. It might also be necessary to delete some settings stuff from the reader partition as well - or just wipe it completely.
One thing you should never mess with is the first 26MB of the internal flash device. There is a bunch of raw data hidden in it that cannot easily be restored and there are some folks on the forum that already bricked their devices (irreversibly!!).
All you should have to deal with is the reader, data, system partitions.
Here are some additional sources of information: