I just got my Plug two days ago. Following the methods here, I have copied the Nand flash to a 2GB SDCard, got it to boot from that. The boot was fast. After doing a bit of customizations, I save the running SDCard image to another SDCard in a usb adapter plugged into the usb port. After powering down, I was able to plug the second SDCard into the SDCard slot, and reboot. So I have a working SDCard image backup method. The 2GB copy was quite long, about 90 minutes. Eventfully I would use rsync, to make the updates to this backup, hopefully a much faster copy method.
I have a major problem to overcome now with apt-get. Even though I set up the directory for apt-get, and fixed the dhcp (so dns resolution works), when I try to do an apt-get update, it runs for a minute or so, but stops with Errors:
root@debian:~# apt-get update
jaunty Release.gpg [189B]
jaunty Release [74.6kB]
jaunty/main Packages [1234kB]
jaunty/restricted Packages [865B]
jaunty/universe Packages [4442kB]
jaunty/multiverse Packages [159kB]
Fetched 5910kB in 32s (182kB/s)
Reading package lists... Error!
E: Encountered a section with no Package: header
E: Problem with MergeList /var/lib/dpkg/status
E: The package lists or status file could not be parsed or opened.
How do I fix the above error?