Just in case you RedBoot configuration settings are messed up (RedBoot prompts you to perform “fconfig -i”). The settings are as followed:

RedBoot> fconfig -l
Run script at boot: true
Boot script:
.. fis load -l vmlinux.bin.l7
.. exec

Boot script timeout (1000ms resolution): 10
Use BOOTP for network configuration: false
Gateway IP address: 0.0.0.0
Local IP address: 192.168.1.254
Local IP address mask: 255.255.255.0
Default server IP address: 0.0.0.0
Console baud rate: 9600
GDB connection port: 9000
Force console for special debug messages: false
Network debug at boot time: false

This step is similar to the 8 commands below (initial step for enabling RedBoot on ethernet)

root@OpenWrt: ~# cd /tmp
root@OpenWrt: ~# wget http://fonera.info/camicia/openwrt-ar531x-2.4-vmlinux-CAMICIA.lzma
root@OpenWrt: ~# mtd -e vmlinux.bin.l7 write openwrt-ar531x-2.4-vmlinux-CAMICIA.lzma vmlinux.bin.l7
root@OpenWrt: ~# reboot

root@OpenWrt: ~# cd /tmp
root@OpenWrt: ~# wget http://fonera.info/camicia/out.hex
root@OpenWrt: ~# mtd -e “RedBoot config” write out.hex “RedBoot config”
root@OpenWrt: ~# reboot