OK, thanks everyone, your info set me on the right path.
So right now i just successfully reinstalled kindle-jailbreak-0.6.N and update_usbnetwork_0.32.N_k3w_install
I can now telnet in via USB networking... pretty cool, i've never done IP over USB before.
anyway i am looking at /var/log/messages
is that the right place to look for clues as to why the update to 3.3 fails?
btw, this is the update file i am trying to use
http://s3.amazonaws.com/G7G_Firmware...e_3.3_B008.bin
Yes, I am able to successfully reboot, but that does not change anything.