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I've never had a successful copy myself either. But, in trying, I fully believe that the "system" is not contained on the HDD. As such, it will always boot and give you the menus, but it fails to mount the extra information contained on the hard drive to let those "applications" work (such as nav).
Case in point, try booting it without the hard drive attached. It will basically give you the same result; at least mine did.
I have not proven it yet, but I believe getting into the system and looking at the boot log will show why the hard drive isn't mounting. I have an Ethernet adapter to try this (you can telnet into the system), but haven't done so yet. It's just such a pain to keep removing all the trim just to try.
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