I tried to replace the 4gb sdcard with a 16gb and expanded the user partition. Apparently, it works fine.
@Ken, I did all of those and I can see the menu now However the menu doesn't seem to respond to any input. I can proceed to the original application (i guess it's called nickel) when I press the power button from the menu.
Is the development at this stage? Has someone successfully run koReader in an H2O?