Format the drive, certainly.
this:
mount: wrong fs type, bad option, bad superblock on /dev/loop0,
missing codepage, or too many mounted file systems
often indicates nothing worse than a bad squashfs image. I had this problem too. re download it.
as I said in my other post, remove the zgcc squashfs. make a small one out of a text file or something. drop in /data. reboot (or just mount it manually). I bet it mounts and you don't get the error.
I recommended the older zgcc, becaue I dld the newer one twice and got that error, and after one shot at the older image, the error went away--i thought maybe the latest image on the server was bad.