Thank you again for your time and help.That is missing a + inbetween. For some reason that was omitted in an edit I've done recently. Maybe a XenForo bug or something.
The line now again correctly reads chmod a+rx /jffs/scripts/* in the first post.
You have to create the directory /hosts in the root directory of your stick, you will then have a path like this: /tmp/mnt/sda1/hosts/.
Then place the whitelist and blacklist files in it.
I think it seems to be working, in that it creates a hosts.block(ed? - had to go to work so I don't exactly remember the name) in /tmp/mnt/sda1/hosts/ and that file is filled with 0.0.0.0 stuff.here.com, but even after rebooting the router and the computers, and ipconfig/flushdns'ing, i couldn't actually get it to block any ads. Again, im sure it's something I did, but going back over your tutorial, I can't pin it down.