When using CWR to install MIUI I formatted /system, /data, and /boot. I also performed the wipe data/factory reset, dalvik cache, fix permissions, and wipe cache partition commands. I used a 2gb microsd card with the 1gb version of CWR 220.127.116.11 on it and the MIUI zip file on the card. It gets stuck in the boot loop for MIUI 1.8.5 as well. If I follow these exact installation instructions with Honeycomb Preview v4 or CM7 the flash works fine.
Any ideas on how to resolve this issue?