[aesop]

This one got fixed.

Copied the demo.bin, extracted rootfs.img from it (using kindletool), flashed as mmcblk0p1...

I thought this will take me back to square one, PW running in demo mode.
But instead, it made it a "normal" Kindle... Running 5.4... Will leave it at that...

Honestly, not sure how this happened.

Thanks you, knc1 for all the help...

EDIT:
Had it connected to Wi-Fi and while browsing around (the Kindle had nothing but the User Guide on it) it got updated to 5.6.1.0.6 (2588930001).
This might create problems for jailbreakint etc. but I was not planning to do anything like this with this unit...