Default [Q] bad block error when rooting

I read similar posts about about bad blocks.. but nothing that answered my question or seemed to be during the same phase.
I'm sorry I've been reading on this some.. but I'm pretty much a n00b when it comes to rooting a phone. If I managed to miss a post about this, I am sorry if you would point in the correct direction.
Thank you for any help ahead of time.
I have a MyTouch3G Slide, following the rooting steps from XDA Post during the step where you copy the image over.. I get a strange error
Quote:
# /data/local/flash_image misc /data/local/mtd0.img
/data/local/flash_image misc /data/local/mtd0.img
mtd: read all-zero block at 0x00000000; skipping
mtd: MEMGETBADBLOCK returned 1 at 0x00020000 (errno=0)
mtd: not writing bad block at 0x00020000
error writing misc: No space left on device
So yeah.. reading it makes me think cool I just need to delete some stuff, but my phones Internal Storage is 20.20MB right now, while the mtd0.img is less then 1MB.
So now I'm wondering with the error its giving is my phones "Flash Memory" going bad, or is this normal?