Nope. You misunderstood me. The IPs were just an example. The default values in the script were 192.168.2.1 and 192.168.2.2 and as you said the subnet has to be the same.
Now I assume you have the following configuration:
# Tweak these to match your setup
Now the steps to access the Kindle:
Now you enabled the network module, set the IP of the Kindle to 192.168.0.102 and changed to default network route to the USB network interface.
Now you have to assign an IP to your pc usb interface (just think about it as an ethernet card).
On your PC:
ifconfig usb0 192.168.0.101
Now your pc has IP 192.168.0.101 and your Kindle 192.168.0.102.
Now you can access your Kindle.
As I said in the above post you tried to telnet to your pc and not to the kindle, so you got a password prompt (root user of YOUR pc and not of the Kindle).