No dice. Boot loops out the yizzy. If I nandroid, will I no longer be on 2.3.40?
If you nandroid restore, you should be all set! Nandroid will replace system, data, etc. But won't replace bootloader, kernel, or baseband, so you'll still be on 2.3.340... which is exactly what you want for your liberty install.
Just an FYI for both you and Mader... coming from ANY non-blur based ROM and doing Maderstcok is guaranteed to bootloop due to mismatch in framework (and the data that is stored for that framework).
Let us know how it goes!