Okay, on my C1000, the tetsu kernel just doesn't install. Following the procedure, it tells me to reset the Zaurus. After that it boots - first I thought it was a success - but it turned out that it booted the original Cacko kernel. The installation procedure is a no-op, doesn't change a thing, at least for me.
You can install the tetsu kernel anyway - by replacing zImage.bin in the tools.tar of the Cacko ROM and flashing it. Then the problem described by Jon_J surfaces - launch.conf not found, respawning too fast.
I was messing with the tetsu kernel because the 'Japanese Cacko Kernel 1.23' does not work with C1000 (or C3200 for that matter) and I was under the impression that I need a Japanese kernel for full Japanese support. Other sources now tell me that it may work just as well with the original Cacko kernel for the C1000.
I'm fairly new to all this Zaurus business (flashed Cacko just yesterday), so I'll see if the unmodified Cacko will work for Japanese and get back to getting a Japanese kernel only when I find out that it is actually required