Ok, thanks for the tip. And yes, it was a typo.
So, zImage should not have an extension and initdr should be "initrd.bin".
When I look at those files using windows explorer I don't see extensions at all, however the files are shown as BIN files.
I will try one more time.
EDIT: this is what I get looking at the files using CMD:
Directory of H:\
05/25/2005 11:26 PM 14,680,064 initrd.bin
05/25/2005 11:25 PM 911,388 zImage.bin
2 File(s) 15,591,452 bytes
0 Dir(s) 112,439,296 bytes free
Update: If I try to rename zImage.bin file through CMD, it says "The system cannot find the file specified." and the file on my CF card turns to be 0KB instantly after the issued command: ren h:\>zImage.bin zImage
Update: WOHOOOOOOOOOOO!!!!!!!! I f***ing got it working. I had the zImage with bin extension and issuing the wrong command on CMD to rename it. Once I renamed it correctly (command: ren namefile1 namefile2 {in the right directory}) all worked it out.
Gazilion thanks to everyone.
I'm so freaking happy...wohooooooo!!!!!!