I did not do the steps as layed out instructions.
Did it in two group steps;
1. Flash desired kernel, as linked earlier.
2. Prepare the "drive" using a linux host;
a. fdisk and prep the sd card (or cf), root ( / ) and swap.
b. mkfs.ext3 the partition's you setup (seems to work better than ext2 IME)
mkswap the swap partition you setup
c. uncompress the hdd tarball onto the root of the sd card (cf is used)
d. uncompress the desired and matching kernel modules to the root of the sd card (or cf)
3. Put the card back in the Z, reset and enjoy. No scripts or things to fuss with, faster too. Be sure to do the file related
config steps listed in the instructions (i.e. fstab, automount.removable etc.)
If you do not have a linux host, download a livecd of ubuntu (for instance), copy the files to a flash drive and fire up
ubuntu. Follow the above steps
Hint for root password; open terminal type "sudo passwd" and set one you want to use for the moment.