XM MMC rootfs boot problem

I have an XM card that I am trying to use the mmc as the rootfs

The card that came with it uses a ramdisk image that it loads (taking
40 seconds or so) and uses that as the rootfs.

I have made a mmc card with a large ext3 partition.
It mounts as /media/mmcblk0p3 on the ramfs version
I then copied all the files from /bin/ /sbin /dev etc. onto this
partition and used the following in u-boot

mmc init
run loaduimage
setenv bootargs 'console=ttyS2,115200n8 console=tty0 root=/dev/
mmcblk0p3 rw rootfstype=ext3 rootwait omapfb.mode=dvi:
bootm ${loadaddr}

It gets all the way to the angstrom login screen, however when I type
root as the login, it pauses, and then gives the angstrom banner

Please help