If you can get into the D+B rescue mode then you have to mount the "normal" partitions before you can do any work on them. D+B mode gets you to the hidden filesystem on mtdblock1 (or possible mtdblock0). The normal partions are mtdblock2 (root) and mtdblock3) home - at least that is true for the C760 and C1000 zaurus.
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My C3000 is back thanks to the information above! Many thanks Stu!
All I had to do was to enter into Linux using the D+B key combination and then execute the commands that are listed at the end of this message.
When rebooting there was one or two error messages (too fast to be read) but then the Qtopia environment started fine.
However the On/Off button is still not working I intend to upgrade to the Sharp 1.1 NAND and see if it works.
Thanks for all the help!
[CODE]
cd /
mkdir x
# this is the root of the normal file system
mount -o rw,noatime /dev/mtdblock2 x
x/sbin/eraseall /dev/mtd3
mount -o rw,noatime /dev/mtdblock3 x/home
cd x
tar xf root/.home_default.tar
# prepare /x/dev
dd if=/dev/zero of=dev/ram1 bs=1024 count=64
mkfs.minix -i 512 dev/ram1 64
mount -t minix dev/ram1 dev
(cd home ; tar cf - dev | (cd /x ; tar xf -))
# mount /x/tmp
mount -t tmpfs -o size=1m none dev/shm
cd dev/shm
mkdir tmp run
mkdir run/usb
chmod 4777 tmp
touch run/utmp
cd /x
#

/etc/ledmode reset
# assuming /dev/hda1 does not need to be formatted
mount -o ro /dev/hda1 hdd1
mke2fs -j /dev/hda2
e2fsck -p /dev/hda2
mount /dev/hda2 hdd2
gzip hdd1/.sys/hdimag2.tgz | tar xf -
#

sltime -clear
# prepare for reboot
cd /
umount -a
reboot