All,
It took me 2 hours to get the set up going however after attempting this on a Virtualized Winxp box on top of a Win 7 box, I ended up getting this to work on a Ubuntu Live cd. I now have my 30G partition back by reflashing the emmc. I flashed the vanilla first and then the combined image. Even though I read thru that thread my misunderstanding was the type of flashing there was. Vanilla vs Fiasco/combined. Thank you all for your help as I learned alot about the filesystem thru this fiasco (no pun intended).

On a side note, (I haven't learned my lesson yet). Is there a solid NITdroid installation document which I can follow to get this going on my device? I want to see what all the hype is about.