Yes, you need to repartition your HD, if it still complains, in my case the zaurus was not finding the partitions in the way it expects. I solved the problem in this way:
-- I tried CONTROL+C
In that moment, my zaurus carries on with the boot process
When you have access to a terminal, write:
su
mount -o remount,rw /
edit the file /root/etc/rc.d/rc.rofilesys (I use mc for this).
now look for any HDD2 error message, comment out the ledctl lines and the while loops. I attach mine so you have an example.
Good luck!
E