There I see the issue. You tried to mount a FAT32 partition as overlay. This is not supported by OpenWrt. Format the overlay as ext3, set option fstype 'vfat' to *ext3* and disable the fsck with  "option enabled_fsck  0" as explained in the OpenWrt Wiki.

Additional to this you enabled swap for the *same* partition. This had to go wrong! Disable the swap or create a second partition for swap.

Kind regards,
Johannes Morgenroth

Am 30.01.2014 18:11, schrieb Theodoros Bourchas:

root@OpenWrt:~# fdisk -l /dev/sda

Disk /dev/sda: 8031 MB, 8031043584 bytes

224 heads, 16 sectors/track, 4376 cylinders, total 15685632 sectors

Units = sectors of 1 * 512 = 512 bytes

Sector size (logical/physical): 512 bytes / 512 bytes

I/O size (minimum/optimal): 512 bytes / 512 bytes

Disk identifier: 0x00000000

   Device Boot      Start         End      Blocks   Id  System

/dev/sda1            2048    15677439     7837696    b  W95 FAT32

********************************************************************************************************

root@OpenWrt:~# cat /etc/config/fstab

config global 'automount'

        option from_fstab '1'

        option anon_mount '1'

config global 'autoswap'

        option from_fstab '1'

        option anon_swap '0'

config mount

        option target '/overlay'

        option options 'rw,sync'

        option enabled '1'

        option fstype 'vfat'

        option device '/dev/sda1'

config swap

        option enabled '1'

        option device '/dev/sda1'