Lol. I didnt wan't to pollute minimodding with my "Err... this is the way sorta" noise until I was sure that right method to "push"
I think it is clear now there are 3 or 4 steps/solutions/measures one can take to try to get the 3.4 update to go through.
Extract the 3.3 kernel from the official update using Nilujes KindleTool
Rollback the modules to a 3.3 clean copy of the files
(you would need a backup copy, this won't apply to most people)
Remove any random jailbreaks that are ligging around if those steps fail
Roll back to a 3.0.2 and do the complete upgrade steps.
It is worth noting that this way does not flatten your documents
So, now I have my facts straight, In the AM I will transfuse my upgraded knowledge to the Nerd Cave
Wow that took a long time.