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I had this kind of problems with previous upgrades. Cause: CF. It might be the brand/chips/controller/whatever of the CF having the effect.
I am now using a 1 gig MMC card, you know those small ones for cellphones? I have it for the Iliad, it does not noticably degrade batterypower and all reboots work fine. (and a nice CF available for reflash and such hehe)
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