grandkai, those blocks are marked bad permanently, because they ARE bad. There is no way to reallocate them, as they are broken. The reason you are experiencing difficulty is that the boot partition is pretty much full by default. There is simply no room for bad blocks to be present. With the blocks being bad, there isn't any room for the kernel to fit. I'm not sure what the results of flashing the SBF file and returning to stock would be at this point, either. I am thinking it might fail to flash and brick the device. With this particular case, i'm sort of at the point where I don't know what to recommend.