I've been too tired with all that installation problems and questions in forum so I wrote BFU installer which should handle all that work for you. You can find it in our tools GIT repository or link to most recent version in Bootpacks page. BASH only.

What it can do?
BFU installer is run on your PC where you have card reader (or LD connected with cable). During installation process you'll be asked simple questions in some UI.

Supported UI:

• kdialog (KDE3 or KDE4)
• zenity (GTK)
• dialog (ncurses TUI)

It can:

• detect your card in reader on your computer
• partition card for you
• create filesystems and swap space
• download files and put it into right place
• let you select image of miska's OE builds on http://auryn.karlin.mff.cuni.cz/oe (for some scenarios)

To be able to run correctly you need only tools which you probably already have:

• wget (HTTP and FTP command line downloader)
• dialog, kdialog or zenity (UI tools)
• bash (shell and script interpreter)

I designed it to be easily extensible for future changes, verbose about current job and easy to understand.

Things to do

• fix my broken English - volunteers still welcome
• write more verbose comments
• add undocumented scenario wizard (choose kernel, choose initrd, choose rootfs, mix it, serve)
• improve KDE dialog passive window
• add support for squashfs-lzma images for rootfs

Test it carefully, script must be run with root rights because of partitioning, filesystem creation and explicit mounting. If you encounter bug, send output produced to console to my mail (sleep_walker at this domain).

Update:
Partitioner fixed. (there was problem with 1024 != 1000 on fdisk side :/ )
There was added sanity checks for card device. Now when you select your HDD device, it should be detected and avoided. It still can have problem with for your Linux unknown devices (you have Windows on second HDD and you don't mount it in Linux), so you'd still better know what you do.