I'm seeing a trend here... The conversion of rc.local from 1.0.4.6 to 1.0.7.8 can be somewhat difficult and many people are getting stuck with no ability to log in. Unfortunately, unless you put the copy button bypass into *your* rc.local, the bypass does not work.
In retrospect, the bypass is in the wrong spot. It should be in /apps/bin/rcex which mounts the /opt directory and executes rc.local. That way pressing the copy button will *force* a boot with the firmware's /opt directory which is known to work. I'll be uploading an updated firmware image shortly which addresses this issue.
- K.C.