Ok, on your reader partitition (the READER drive which is exposed via usb) should reside a script.log file that logged the rooting process - could you please post it?
The sd recovery package does not restore 1.0.04 but an older firmware.
So the best way to go now is applying the 1.0.04 restore set from
http://projects.mobileread.com/reade...lash_packages/
If you want, modify the files according to my previous post, that is: edit the do_update.sh file and the checksum file and remove mmcblk2p9.img
After flashing, look for the script.log file for errors.
If all went fine, try the regular root set, not the minimal one.