Problem flashing latest Qtopia image

Hi,

few days back my Mini2440-128MB with T35 TFT arrived - it's a used model.
It had been preflashed with Qtopia - i tried WinCE & Android and now I'm
stuck in flashing latest Qtopia image.

When I first tried to download linux kernel - i got the message that the
file would be too big, so I repartitioned like described in another
posting.
------------------------------------------------------------
vivi            :  0x00000000  0x00040000  0
param           :  0x00040000  0x00020000  0
kernel          :  0x00060000  0x00500000  0
root            :  0x00560000  0x40000000  0

After Qtopia installation like described in manual i get this error message
upon boot (complete log is attached to this posting)
...
Failed to execute /linuxrc.  Attempting defaults...
Kernel panic - not syncing: No init found.  Try passing init= option to
kernel.
...

During flash procedure I observed a message indicating a single bad block.
Do you recommend starting fixing there, or did I miss another step?
-----
Blocks scanned: 980, Blocks erased: 979, Blocks are bad: 1
RECEIVED and Writed FILE SIZE:62008330 (526KB/S, 115S)
-----

I used 
- supervivi-128M 20100818
- zImage_T35 (http://www.andahammer.com/FAJan2010/zImage_T35)
- Qtopia 2.2.0 (http://www.andahammer.com/FAJan2010/root_qtopia-128M.img)
Boot parameters are:
Number of parameters: 9
name                    :     hex       integer
-------------------------------------------------------------
mach_type               :  000007cf           1999
media_type              :  00000003              3
boot_mem_base           :  30000000      805306368
baudrate                :  0001c200         115200
xmodem                  :  00000001              1
xmodem_one_nak          :  00000000              0
xmodem_initial_timeout  :  000493e0         300000
xmodem_timeout          :  000f4240        1000000
boot_delay              :  01000000       16777216
Linux command line: noinitrd root=/dev/mtdblock2 init=/linuxrc
console=ttySAC0

Please bare with me, I'm a complete newbie on embedded dev.
Many thanks in advance

http://www.friendlyarm.net/forum/topic/661