I think you're referring to the Portadroid stuff (not my work), that's not working at the minute as is. The script has a couple ways of doing the multiboot, the portadroid was as you say replacing the init and looping .ext4 files, the other way which should work as is with the TF is bind mounts, with a mountfs.sh file being called in place of calling fstab.Ooh, neat! I see that it automatically patches an initrd with a more advanced technique than I was using. I like how you replaced init with your own shell script so that you could hook into the boot process as soon as possible. Cool stuff.
Again the method isn't my work - just the automation provided by the script.
With the gamma script on that page (if you wanna give it a try run beta for the time being), I tried to replace the mountfs.sh with the gamma script itself, but that's currently not working, I think the problem is getting arguments passed in the *.rc file.