I'll look into the Magic issues in a bit.. That's why I didn't call this 4.2 yet
If it helps here's the logcat after flashing htcrecovery and cm4.1.99
* daemon not running. starting it now *
* daemon started successfully *
I//system/xbin/busybox( 49): +++ "This is your world, these are your people. You can live for yourself today, or help build tomorrow for everyone."
I//system/xbin/busybox( 49): +++ Welcome to Android 1.6 / CyanogenMod-4.1.99
I//system/xbin/busybox( 49): --- Loading kernel modules
I//system/xbin/busybox( 49): --- Checking filesystems
I//system/xbin/busybox( 49): e2fsck 1.41.9 (22-Aug-2009)
I//system/xbin/busybox( 49): /dev/block/mmcblk0p2: recovering journal
I//system/xbin/busybox( 49): Superblock last mount time (Mon Oct 5 06:02:45 2009,
I//system/xbin/busybox( 49): now = Mon Aug 24 21:04:29 2009) is in the future.
I//system/xbin/busybox( 49): Fix? yes
I//system/xbin/busybox( 49): /dev/block/mmcblk0p2: clean, 10/64384 files, 8463/257040 blocks
I//system/xbin/busybox( 49): cp: cannot stat '/data/app-private/*': No such file or directory
I//system/xbin/busybox( 49): cp: cannot stat '/data/dalvik-cache/*': No such file or directory
I//system/xbin/busybox( 49): +++ Apps-to-SD successfully enabled
I//system/xbin/busybox( 49): /system/etc/init.d/05userinit: 14: Syntax error: "fi" unexpected (expecting "then")
I//system/xbin/busybox( 49): run-parts: /system/etc/init.d/05userinit exited with code 2
I//system/xbin/busybox( 49): --- Enabling compcache
I/logwrapper( 49): /system/xbin/busybox terminated by exit(1)
I/DEBUG ( 141): debuggerd: Oct 3 2009 23:25:21
I/vold ( 140): Android Volume Daemon version 2.0
I/vold ( 140): New MMC card 'SU04G' (serial 276444197) added @ /devices/platform/msm_sdcc.2/mmc_host/mmc1/mmc1:e0a9
I/vold ( 140): Disk (blkdev 179:0), 7959552 secs (3886 MB) 3 partitions
I/vold ( 140): New blkdev 179.0 on media SU04G, media path /devices/platform/msm_sdcc.2/mmc_host/mmc1/mmc1:e0a9, Dpp 3
I/vold ( 140): Partition (blkdev 179:1), 5767272 secs (2816 MB) type 0xb
I/vold ( 140): New blkdev 179.1 on media SU04G, media path /devices/platform/msm_sdcc.2/mmc_host/mmc1/mmc1:e0a9, Dpp 2
I/vold ( 140): Partition (blkdev 179:2), 2056320 secs (1004 MB) type 0x83
I/vold ( 140): New blkdev 179.2 on media SU04G, media path /devices/platform/msm_sdcc.2/mmc_host/mmc1/mmc1:e0a9, Dpp 1
I/vold ( 140): Partition (blkdev 179:3), 128520 secs (62 MB) type 0x82
I/vold ( 140): New blkdev 179.3 on media SU04G, media path /devices/platform/msm_sdcc.2/mmc_host/mmc1/mmc1:e0a9, Dpp 0
I/vold ( 140): Evaluating dev '/devices/platform/msm_sdcc.2/mmc_host/mmc1/mmc1:e0a9/block/mmcblk0' for mountable filesystems for '/sdcard'
I/vold ( 140): Aborting start of /sdcard (bootstrap = 1)
I/vold ( 140): Volmgr not ready to handle device
D/vold ( 140): Bootstrapping complete
E/flash_image( 147): error opening /data/recovery.img: No such file or directory
D/AKMD ( 149): akmd 1.6.6 START
D/AKMD ( 149): library version: 1.2.1.1129