I am attempting this myself - I use !HForm to format the hard disk - it asks some questions that I wasn't sure about:
Format or Initialise - is the second just a fast format?
Bootable - I guess I should answer yes?
I used the defaults for most of the 'number' questions.
I get as far as copying the files over (I guess I'm just opening the SDCard from the pinboard and likewise the newly formatted HD and dragging the contents across?), then rebooting. It waits for a system disk but never finds it.
What am I doing wrong?