I know how the overclocking settings are supposed to work, but usually I use the QCPU frequency app to edit the settings and mess around, that way if anything does go wrong, it reboots with the message "An unexpected reboot occurred. Your custom kernel settings were NOT loaded".

But this time I did it through x-terminal, using exactly these commands, immediately entering one after the other:

sudo gainroot
kernel-config load starving
kernel-config limits 1150 1150
kernel-config save prozac1
kernel-config default prozac1

30 seconds after phone rebooted but wouldn't go past the Nokia screen with white background, it just stayed on that background for about another 20 ish seconds and switched off. Tried switching it on 10+ times and still kept repeating this.

I think it happened because of the kernel-config save prozac1 and kernel-config default prozac1 commands that I entered.

That made the 1150 1150 and starving settings my default profile, so even though the reboot occurred and the kernel should revert to default settings, the above settings became my "default" ones if you follow my drift? Hence the constant boot failure.