Actually, I did run disk builder twice... but not on purpose. I finished running it the first time, closed Hyperterminal, and pulled the plug. Then, I replugged it and before I could start the upgrade of the developer image, the disk builder started formatting/pumping all over again, so, I waited till it began to test again, and then did the developer upgrade.

So, it may very well be that it still does take two runs of the disk builder to work?