Thanks for all the help so far guys. I really appreciate it.
Alright. The battery light does turn on when the battery is plugged in and the AC is attached. So that is good.
But getting the unit to start up is still a problem. Let me restate exactly what I am doing.
1) Remove battery and unhook AC power, leave the battery hatch open and unlocked
2) Press D+M,
3) While holding down firm on D+M, attach AC while holding keys down for 3-5 seconds ...
4) This pops up the service dialog menu, with about 3 pages of menus and options
5) The bootflag is currently, "----"
6) Turn off zaurus

The battery is still not in the system, but AC is still attached
9) Click the reset switch
10) Leave the battery hatch open and unlocked
11) Attempt to turn on by pressing the front side "on/off" button
12) Nothing happens
The only way to get the zaurus to turn on at all or respond is to follow steps 1 to 4.
I have not tried doing another NAND backup restore yet. Should I give that a whirl?
Also, I believe the batter is probably out of power. Could this affect anything?