As mentioned in many posts, the LED is controlled by the firmware and you cannot trust the LED on a bricked kindle.
Originally Posted by Poetcop
Kindle in fastboot mode, shows up as Lab126 Kindle in the Removable Devices menu. However switching from Windows to the virtual machine seems to involve virtually unplugging it: "A USB device is about to be unplugged from the host and connected to this virtual machine." And unplugging it invariably makes my Kindle leave fastboot mode, so it's not too surprising that we're still <waiting for device> in Linux. Like murz_07, my Kindle never shows a green light in fastboot mode, no matter what combination of presses.
Any ideas for things to try? Is there any point to trying VirtualBox?
VirtualBox works great for me, so it IS worth trying. When I had your problem of USB dropping out when switching to or from the VM, it was because my kindle battery needed recharging.
From my experience, it seems to discharge the battery while sitting bricked in any mode but fastboot. You should leave the kindle in fastboot mode (but you can stop the MfgTool) for at least an hour before trying to switch the kindle USB port to linux to use fastboot.
This would all be a lot easier if we had MfgTool (or a working sb_loader) and fastboot tools that all run in ONE operating system. It is inconvenient to need both windows and linux like I have been using. To prevent dropping out of fastboot mode (IF it is still a problem after correctly charging the battery), you can set the idme bootmode var to fastboot mode and save it to the mmc storage device. After that, even a "long power hold reboot" will go to fastboot mode. This can be done many ways.
If no other way works for you, I could create a u-boot version that saves "fastboot" into the idme bootmode var on mmc.
I have K4 u-boots that save bootmode to mmc, but they will not work on a kindle touch, so a new one would have to be created using the touch u-boot source code (which also works for the K4). The "SelectBoot" versions do not change the mmc contents.