Did you find a solution to this? Here's what I've surmised (keep in mind that it's "first impressions" for me)...
I recently purchased a LifeDrive and have discovered that the hard drive seems to be implemented such that the OS sees it as an SD card. Essentially, with an actual SD card in the SD slot, the LifeDrive's OS believes that it is dealing with two SD cards. The Quick Install application does not seem to support a device with more than one SD card (in whatever physical form they might be in!). To get around this, the LifeDrive product CD includes the "LifeDrive Manager" app which does support this. Perhaps this app supports the psml file with the syntax you show? -- For information on using the PalmSource Developer Forums, or to unsubscribe, please see http://www.palmos.com/dev/support/forums/
