@stangri: Nope, the JailBreak still works on 3.4. What you might be missing is an item in the jailbreak whitelist to let the DXG prep stuff run.
AFAIR, I added it a while back, so try replacing your linkjail/etc/whitelist file with the one from the latest zip package. If it doesn't help, check the filename of the package you're trying to run, and add it to the whitelist (and forward it to me if it's really not in the latest version
).