Ok it appears that your kernel is installed. I included the entire boot log with this reply.
I also tried every concieveable boot combination i could think of. It's having troubles... still no persistant settings. everything else seems ok.

Thanks again for your assistance.
Note:
The only problem I ever had with my player was the disk full issue that prevented me from syncing.
that post is under bug reports as "EEK 1.02rc1 Stage 5 error "
(sorry i don't know how to link posts.)
not sure if this is even related but I thought I would include the info.

12Gb MKII 080000516 Blue