Hi,
did you (or anyone) find out any more about this? I am looking at an exact copy of the behavior you described.
I have wince600 source for an ARM926 hw, it compiles and the resulting eboot_ivt.sb boots and loads nk.bin from sd card.
On the same hardware and dev environment (WinXP), for wince700 I have done some porting according to the CE6.0-to-Compact 7 porting guides (mostly path modifications; no value changes in configs).
The ported source compiles (VS2008+Compact7 evk) and produces eboot_ivt and nk.bin. The new nk.bin (contains more than the previous ce600 source but anyway) can be launched with the old ce600 eboot_ivt and with the i.MX28-EVK Compact 7 reference eboot_ivt (it stumbles on memory allocation problems but launches for a start anyway).
After xldr::start(), the eboot init should be executed I quess. Instead the xldr is run again, indefinitely. Any ideas of what causes this and what could fix it ?