Just a couple things:
1.) Near the end of the 1st post, you say to chroot and then you start to mount /dev, etc. You either have to exit after the chroot or switch around the order of those commands (you can't mount /dev or /dev/pts, etc while you're in the Jaunty root).
2.) I'd include instructions to activate swap. I'm guessing this is something you've already done, otherwise I'm not sure how you got this to install without it...It's not essential for the bootstrap process, but gnome dependencies and especially the locales are gonna require a bit of RAM to avoid crashing.
3.) I see from your screenshot that you have composite shadows enabled. Is that slowing it down significantly or is it about as fast?