As I posted earlier, upgrade failed entirely.
Had to do a full reset of the phone with stock ROM and then flash my way up with lots of strange things happening on the way. /mnt/emmc card seems to be messing up the flashing process as it works when I remove it.
Nandroid backup of the 3.4 install is not working
Any idea on how I can check what is going wrong in the booting of the backup? I am absolutely perplexed as to why the nandroid is not working..