dCore on Seagate Goflex Satellite - loadsce problem

[sharicov]

I am trying to run dCore in chroot on Goflex Sattelite wireless HDD device:
(http://www.seagate.com/external-hard-drives/portable-hard-drives/wireless/seagate-satellite/)
chroot itself works after I had extracted G802 build of dCore (gunzip initrd from the following location: http://tinycorelinux.net/5.x/armv7/GK802/initrd)
I mounted proc sysfs /media/ram and /var/volatile
Downloaded debian_wheezy_main_armhf_Packages to /etc/sysconfig/tcedir/
Added "nameserver 8.8.8.8" to /etc/resolv.conf
Created /etc/sysconfig/tcedir/sce /tmp/tcloop/ and /home/tc
Set pathes to /bb (for busybox) and /usr/bin (for importsce and loadsce)
In order for modprobe to show  modules correctly I copied modules from /lib/modules/3.0.35/ to /lib/modules/2.6.32/ (was complaining they are not in 2.6.32)

importsce works perfectly fine, but loadsce fails with following message:
 mount: mounting /dev/loop0 on /tmp/tcloop/nano failed: No such device
Tried to mount sce manually:
losetup works correctly
losetup shows:
/dev/loop0: 0 /etc/sysconfig/tcedir/sce/nano.sce
But mounting still doesn't work:
mount /dev/loop0 /tmp/tcloop/nano/ -t squashfs -o loop,ro,bs=4096
Returns:
mount: mounting /dev/loop0 on /tmp/tcloop/nano/ failed: No such device

What am I missing?
Please help!
Thanks in advance.

[curaga]

Your kernel doesn't have support for squashfs.

[sharicov]

Thanks a lot, curaga!
Is there an easy way to add squashfs support?

[expresspotato]

Yes add:

CONFIG_SQASHFS to your .config file. Or, CONFIG_MISC_FILESYSTEMS=y and the next time make runs it should prompt you for options.