I have the iPhone 2G 8GB and jailbroke 3.1.2 with blackra1n and never had a problem for the longest time.

Only issue I ever had was for like 2 days the device acted slow as can be even after a restore, but then after a few days just snapped out of it.

Now I installed yxflash and watched an AVI file perfectly. Then it would show yxflash crashing and showing my memory going down (SB Setting Memory in Status Bar).

Then all hell broke loose, just removing all themes then Winterboard via Cydia, it launched my iPhone in to a reboot (only shows Apple then turns out) loop.

Then after entering DFU mode, restoring with iTunes/blackra1n & PkgBackup, the iPhone is returned to me, and this time it let me remove the same packages with no incident.

Yet now, yxflash just shows all my memory going down and the app crashing on the exact same AVI (even recopied in case it was corrupted).

Anything I should check? Even removing Backgrounder does nothing.