Quite a few people has problem with the rescue systems lately. I'm not sure why. I don't use it because I don't have a need for it, so I can't really have a good feel for the problem.
If you can't make it work then I would suggest abandoning it for now. Just rerun the complete installation, and force a uBoot update and uBoot envs reset so you can get back to a booting Squeeze system.
If you can't make it work then I would suggest abandoning it for now. Just rerun the complete installation, and force a uBoot update and uBoot envs reset so you can get back to a booting Squeeze system.