Install Failed - Boots linux, but doesn't finish

I am using a 2GB SD card in a Lexar Thumbdrive adapter. The image creation worked successfully. When put the USB drive in my AppleTV, restart… I can see Linux booting up. It seems like the boot sequence happens… and at the bottom of the screen, it looks like a “login prompt” is there… but i can’t see anything below it…

Thoughts?

Unfortunately you are using an incompatible flash drive.

Take a look at:
http://forum.atvflash.com/viewtopic.php?f=5&t=68