@aceflor: It's probably best to overwrite the diags partition and kernel using "known good" versions, but that's only the second step. As a first step, please do the following (again, from SSH):
Code:
tar czvf /mnt/us/aceflor-etc.tgz /etc/
then logout from SSH (Press Ctrl+D), disable usb network (";un"), unplug and replug the kindle, and upload the aceflor-etc.tgz somewhere (for instance on hotfile.com, or wherever you please). Then send me the link via PM (don't post it here).
I'm mostly interested to see why/how your machine is mounting the diags partition on boot, and those files will hopefully allow me to find that out.