@NiLuJe
Thanks alot for your quick reply. Had I not realized that your usbnet config file was a script file, I'd still be stuck in the bootloop..
I don't think i could have connected the usb cable after usbnetwork initialized since the device would restart within 30 seconds or so.
For your question asked in your thread: how i broke it - I tried to edit the /usr/bin/mesquitecp file (using kterm) hoping to download PDF files directly from the browser (I have the PW2 wifi version). In doing so i have changed the offsets/file size. I forgot that it's a binary file.
So after the initial restart, the device went on restarting itself..
Yes i was using the latest(nightly/unstable) version of usbnetworking.
I didn't know till you mentioned in your thread that putting an emergency.sh script in usbnet/bin/ would autorun on startup.
So what i did was replacing the modified file with the backup version by editing usbnetworking config script.
Thanks again NiLuJe

for making these amazing methods available. Hope others too would be able to use your scripts as a place to autorun their scripts on boot in case they cant get their devices boot properly.
I also think this method would work as an alternative to the RUNME.sh method that had worked in some previous devices.