sorry to bother you guys but i am having problem installing.
1. Extract the 3 files - initrd.bin, tools.tar, updater.sh -
to the root of your FAT16 formated (ext3 will not work) CF or
SD/MMC card and connect the AC adapter to the Zaurus.
2. From a terminal type reboot and press Enter. Now press and
hold the "OK" button on the keyboard. Alternative: You can
remove the battery, reinsert it and power on your Zaurus while
holding down OK key.
3. You should see the Japanese service menu. Select option 4
(flash/update).
4. Here, you have four options (1. USB, 2. CF, 3. SD, 4.
Back). Select CF or SD.
5. Press the button on the left with the "Y" in it.
6. The pdaXrom installer is launched
7. Choose option "Resize root partition"
8. Enter a desired size - like 45 up to 120 depending on your
needs. You have to apply "Fix sharp loader NAND 64MB limit ()"
on the SL-C760, 860 models to choose more than 64. For SL-C700,
750 models 46 seems to be good.
9. Choose "Install new rom". The installation process begins,
it will take some minutes. After the installation is complete,
the system reboots and you will get a login prompt.
10. Login as "root", no password needed.
11. To set a root password (recommended), type passwd after
you logged in.
12. Type startx (because it doesn’t start automatically on
pdaXrom), calibrate the screen.
13. Start the System Tools/Package manager, go to the Settings
tab, remove all feed lines and add the one listed next to your
model in the first section.
14. If you are connected to the Internet, click on the middle
button in the top line to update your feed information from the
new place.
15. Everything is ready, start using pdaXrom!

seriously need to update this.
i spent 3 hours figuring this out and i figured it out.
when it asks to format the internal drive, say yes. reboot after format and now it works.
still buggy but i will report my findings.