Hi,
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Yes, I always start the processes with the & infix.
Actually I tested nanowm on the LCD of the NEEK the last days and the shell is not going to freeze but the nanowm environment won't show on the LCD neither. Now the shell freezes only when I'm trying to get the uClinux apps display on the vga monitor (1024x768, 24-bit).
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Maybe the kernel is freezing. Can you check it by using telnet or others? And is there any possibility that you are overwriting into the other kernel region?
Kazu