@quimby: Got it, you can remove the attachment

.
Okay, just to confirm:
You installed the jailbreak @ 12:21 (on your TimeZone, assuming your Kindle's clock is accurate).
You tried to install the SS Hack @ 13:03, all hell broke loose.
You tried again @ 15:16, it worked fine.
Is that it?
So, according to your logs, one of the daemon running on the Kindle (phd) crashed horribly before starting the update. Then things went weird, and the Kindle seemed stuck in a loop...
AFAICT, that's an issue completely unrelated to the hacks... :/