The "sync" mount option causes the filesystem tables to be written to repeatedly as gnap_overlay copies files onto the install media. I install GNAP on Compact Flash cards, and this results in unusually slow transfer (15 minutes to copy 35M of data) and excessive wear on the CF, which have a limited number of write cycles. This could lead to premature failure of the CF after only a few installs. I've patched my gnap_overlay by replacing line 251: mount -t msdos -o sync "${OUTPUT}" "${TEMPMOUNTDIR}" with the following: mount -t msdos "${OUTPUT}" "${TEMPMOUNTDIR}" Which appears to resolve the issue.
More info on bug #99039.
Fixed in CVS, scheduled for 2.0 release
Version 2.0 is out