The PE seems to be quite particular about the whole library thing. I was able to upgrade to Ermine after several attempts (see my post (and many others) on the entourage/Ermine forum)
After that I was able to transfer my library to the card on the first attempt, so I'd second the "complete one before the other" recommendations above. Be aware that you'll loose all the storage on the PE (~3 out of 4GB) It's simply no longer accessible, not even as extra space for internal app installation. Which is why I reverted back (which you can't really do) by doing a factory reset and starting over...
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