MID7030 always resetting to factory default when being turned OFF/ON

[lalaland]

So I rooted my Coby 7030 with the files provided for the 7035 http://www.androidtablets.net/forum/coby-generation-3-development/43624-root-mid7035.html, and it worked to some extent.

Whenever I turn the device OFF, it will revert to factory default when turned back on.
With one noticeable difference, Superuser is there all the time.

When I rooted the tablet and it rebooted twice in the process, this did not happen at the time.

If I select "Reset to factory default" from ICS menu, it does the same, and SU is there too.
When I boot into Android recovery (A3) and select reset to default (or whatever its called), it does the same, and SU is there too.
When I boot to Android recovery and clean the caches, etc then reset to default it does the same, and SU is there too.
When I press the reset button it does the same, and SU is there too.

I am a bit lost about what to do now, looks like there is some sort of files that says "First set up has been done already" that is missing from somewhere, or the tablet *actually* resets to factory settings because it does like not being rooted or something, but then SU is still present which looks a bit suspicious to me.

Any help would be most welcome.

 

[lalaland]

Problem solved.

It was caused by a corruption made by busybox in ICS (or its update) which in turn caused mount failures at startup.
A symptom of this problem is that your internal storage becomes 0 bytes and you cannot install anymore stuff on the tablet, as well as something that looks like factory reset, but in fact, happens because the files needed are on a mount that failed.
To fix it, I downloaded term.apk, ran it and typed:

su
cp /system/xbin/busybox /system/bin

I was lucky to have retained root on the tablet for this to work.

Source:
Factory reset after every restart, or shutdown.