If you choose to use the installer twice, it doesn't matter what environment variables you use the first time.
We only use the installer once, since the SD cards are prepared without using the installer. Therefore our installer parameter is aimed at NAND with this uboot-dual-custom.txt (I also have a slightly tweaked runme,php, but if you name this uboot-nand-custom.txt it would do the job):
#### Change ONLY in the following few lines
# Following for installation on SD card. If you want to boot from USB stick change it to /dev/sda1
# or /dev/mtdblock1 if you installed rootfs on the NAND inside the plug
bootargs_root ubi.mtd=1 root=ubi0:rootfs rootfstype=ubifs
# NAND flash partitions. If using kernel >= 2.6.30 then replace orion_nand with orion_mtd
# NewIT comment: If orion_mtd finds 3 partitions when preparing to copy filesystem,
# there will be no room for the filesystem and the flashing will fail.
# It seems that orion_nand is perhaps the correct parameter *always*:
# http://plugcomputer.org/plugforum/index.php?topic=1188.0
mtdpartitions mtdparts=orion_nand:0x400000@0x100000(uImage),0x1fb00000@0x500000(rootfs)
# The following is an example MAC address. Change it according the MAC on the back side of the plug
ethaddr 00:50:43:01:xx:xx
#### DONT change the following.
# Automated process the sets arcNumer to 2097, reset, runs uImage and initrd from USB stick and set bootcmd to 'real_bootcmd' above
# Bootcmd to be used after all installation is done
# New IT commented out 2009-11-18 real_bootcmd setenv bootargs $(bootargs_console) $(mtdpartitions) $(bootargs_root); nand read.e 0x00800000 0x00100000 0x00400000; bootm 0x00800000
bootargs_console console=ttyS0,115200
bootcmd run recover1
recover1 setenv mainlineLinux yes; setenv arcNumber 2097; setenv bootcmd run recover2; saveenv; reset
recover2 run recover3; setenv bootcmd $(real_bootcmd); saveenv; setenv bootargs $(bootargs_console) $(mtdpartitions) root=/dev/ram0 rw ramdisk=0x01100000,8M install_type=nand; bootm 0x00800000 0x01100000
recover3 run recover4; nand erase clean 0x00100000 0x00400000; nand write.e 0x00800000 0x00100000 0x00400000
recover4 usb start; fatload usb 0 0x00800000 uImage; fatload usb 0 0x01100000 initrd
# New IT added 2009-11-18
bootargs_root_nand ubi.mtd=1 root=ubi0:rootfs rootfstype=ubifs
bootcmd_nand setenv bootargs $(bootargs_console) $(mtdpartitions) $(bootargs_root_nand); nand read.e 0x00800000 0x00100000 0x00400000; bootm 0x00800000
bootargs_root_mmc root=/dev/mmcblk0p2 rootdelay=5
bootcmd_mmc setenv bootargs $(bootargs_console) $(bootargs_root_mmc); mmcinit; ext2load mmc 0:1 0x800000 /uImage; bootm 0x00800000
real_bootcmd run bootcmd_mmc; run bootcmd_nand