Final update (and summary of what I've learned):

1) original 2GB pqi Hi-Speed 60 was not (and still isn't) working properly. The reason is yet to be determined
2) user must pay careful attention to the results of the commands he enters
3) after creating a second bootable partition, DO NOT format the first partition by going into File manager and selecting "format". This formats the entire card, not only the desired partition. the command mkdosfs is the appropriate way.
4) try to keep the amount of installed programs at a minimum so that the restore process does not murder your device (eat all of it's resources for an indeterminate amount of time)

5) [my status]: dual-boot, 2GB, ~1.2 GB OS partition, all the installed programs & functions working flawlessly (except the unfixed bugs - but that's another story)