Outlining some steps.

Format and make ext2 filesystem on your SD card
fdisk /dev/xxxx
mke2fs /dev/partition#

Mount the current image file
mount -o loop /path/to/currentimgfile /debian

Mount the new sd card
mount /dev/mmcblkxxxx /media/mmc1

Copy all the content of the current filesystem to the new one preserving permissions
cd /debian
tar cf - . | tar xfp - -C /media/mmc1

Unmount All
cd /
umount /debian
umount /media/mmc1

edit /home/users/.chroot
------

IMGFILE=/dev/mmcblk1p2(or whatever yours is)
IMGFS=ext2
CHROOT=/debian
TMPSIZE=2M
DEBUSER=user
-------

I did not alter the /sbin/debian file at all.

Click on the "Debian chroot" menu item and that will bring up the terminal chrooting into /debian and your debian system.

output of my mounted partitions

/dev/mmcblk1p2 7.4G 1.5G 5.5G 22% /media/mmc1
/dev/mmcblk1p2 7.4G 1.5G 5.5G 22% /debian
none 1.0M 68.0k 956.0k 7% /debian/dev
none 2.0M 80.0k 1.9M 4% /debian/tmp
/dev/mmcblk1p2 7.4G 1.5G 5.5G 22% /debian/media/mmc1
/dev/mmcblk0p1 127.7M 112.0M 15.7M 88% /debian/media/mmc2
/dev/mmcblk0p2 6.8G 501.8M 5.9G 8% /debian/home/user

Had the debian chroot partition up and running fine.