You have mounted /overlay and a different overlay fs (sizes differs). That is very strange! Better you start from the top with a clean installation and then just follow exactly the guide in the Wiki.

Kind regards,
Johannes Morgenroth

Am 30.01.2014 16:36, schrieb Theodoros Bourchas:
root@OpenWrt:~# df
Filesystem           1K-blocks      Used Available Use% Mounted on
rootfs                    1088      1040        48  96% /
/dev/root                 2048      2048         0 100% /rom
tmpfs                    14608       764     13844   5% /tmp
tmpfs                      512         0       512   0% /dev
/dev/mtdblock3         7822336       916   7821420   0% /overlay
overlayfs:/overlay        1088      1040        48  96% /
/dev/sda1              7822336       916   7821420   0% /overlay