Thanks, so at least the kernel command line looks OK.
Could you try to flash the image with recover bad sectors once more and report if this changes the situation?
Ubifs has its own bad block handling, but if there are not Yet marked bad blocks in flash this could cause such situations where is resists to boot to prevent further damage. As soon as all bad block arte marked also in ubifs this is not a problem but ubifs tries to avoid re-writing them to overcome the double write problem, which means it is dependant on correctly marked bad blocks as from then on any newly detected ones will be marked by ubifs.
Same result,booting screen logo and nothing
FIRST STAGE 1.0/400 {BO23456}
[m
2ND STAGE OK, build #84 (2011-09-01)
....
0.031 - BCM board setup
0.032 - fp init
0.032 - ca init
0.524 - load config
0.550 - config loaded.
* woke up from power
* press [S] to enter setup
lcd: BOOT #84
- read config file: /boot/secondstage.conf
detected jffs2 blocksize: 16kb
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++++UUUUUUUUUUUUUUUUUUUUUUUUU
dreamupd initialized
Scanning JFFS2 FS: . | / - \ | / - \ | / - \ | done.
find_inode failed for name=secondstage.conf
load: Failed to find inode
- failed to open /boot/secondstage.conf
- failed to open /cf/autorun.bat
lcd: /boot/bootlogo-dm500hd.elf.gz
Jumpin'Jack Flash initramfs with ubifs by gutemine V5.3 Build Mar 16 2013 19:59:29
Kernel commandline: ubi.mtd=root root=ubi0:rootfs rootfstype=ubifs rw console=ttyS0,115200 debug bmem=116M@140M
ubiattach: error!: UBI is not present in the system
.[ 2.615000] hub 3-0:1.0: over-current condition
Jumpin ubifs Flash ubi0:rootfs ...
[ 3.209000] UBIFS: recovery needed
[ 3.217000] hub 4-0:1.0: over-current condition
[ 3.219000] UBIFS: recovery completed
[ 3.219000] UBIFS: mounted UBI device 0, volume 0, name "rootfs"
[ 3.220000] UBIFS: file system size: 56908800 bytes (55575 KiB, 54 MiB, 3705 LEBs)
[ 3.221000] UBIFS: journal size: 8017920 bytes (7830 KiB, 7 MiB, 522 LEBs)
[ 3.222000] UBIFS: media format: w4/r0 (latest is w4/r0)
[ 3.222000] UBIFS: default compressor: zlib
[ 3.223000] UBIFS: reserved for root: 0 bytes (0 KiB)
Continue booting...
Continue booting failed :-(
[ 3.228000] Kernel panic - not syncing: Attempted to kill init!
[ 3.229000] Rebooting in 180 seconds..